Very Basic Problem With Photoshop

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I want to make a high-res image, sized 256 x 256 pixels. (Small i know, but it must stay at these dimensions, there is a reason why it cannot be any bigger.)

I created a canvas in Photoshop, this size, but when i type on it the letters are incredibly pixelated. The resolution was at around 400px/inch.

The writing needs to be tiny, like you see in this picture.

7x0q.png


Up close it looks terrible; i want this to be high-res.

kxcxzTH.png


Any ideas why this might be happening, and how to sort it out? Cheers. :)
 
Solution
Dpi settings isn't going to make it high res. 256px is still 256px, you are still low res. A higher dpi settings just means they are smaller pixels. The difference is when printed or a physical object. A 256x256 image in 400dpi is .64 inches. 72dpi is 3.556 inches.
The text is being stretched because you are making it bigger without scaling the pixels? Zooming into a 256x256 image without scaling the resolution.
 
I use the the Image/Resize & Resample tool in irfanview to change the scaling(increase resolution). I would imagine Photoshop has an equivalent tool
 
Dpi settings isn't going to make it high res. 256px is still 256px, you are still low res. A higher dpi settings just means they are smaller pixels. The difference is when printed or a physical object. A 256x256 image in 400dpi is .64 inches. 72dpi is 3.556 inches.
 
Solution