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Adobe Photshop 7.0 help please

I'm on a internship/project in which I have to make a website. They have given me some logos to work with but I need to change them a little bit. Does anyone know how I can do the following:

1.) Enlarge the original area that photo encompassed. Specifically I want to extend the right hand side far enough so I can do this

2.) Enter text that matches the original text of the picture i.e. size and color.

3.) Change the background color of the image
 
1) Edit canvas size which will extend the "white space" of the image. You can then free transform the original image however you want or clone the edges.

2) search for free fonts in google and try to find a font that matches what you want then install it.

3) replace color, or edit hue/saturation. When replacing color, use the eyedropper to select the color you want to replace. When editing the hue, make a selection around the background excluding the foreground.
 
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