Draw rectangle not allowing drag to draw, only opens "create rectangle" dialogue box

[chight]

When I select the rectangle (or any shape) tool, it will not allow me to drag from the corner to create the shape.  Instead, when I click it creates a small shape and opens a dialog box allowing you to input your desired dimensions. 

Even worse, I cannot use transform to change the size after its created.  So the only way to alter the size is inputting the size, in pixels, in the dialog box.  Losing my mind over here, please help!

[melissapiccone]

I would reset your preferences and see if that fixes it. Sounds like your PS jsut isn't working correctly. First - look in your options bar at the top of the screen and make sure your shape tool is set to actually make shapes, not paths or pixels. 

[Berghofer Creative]

I found closing and re-opening Photoshop fixed this issue. (For any future people also seeking an answer for this problem.)