Need help with monograms

Ok I have these directions to make a monogram that I got from a post a while ago:

To design your monogram in Microsoft Word: Choose Insert -> Textbox. Type and format the letter the way you like it. Do this three times. Now click on all textboxes and choose Format->Textbox. Choose Color: No Fill (so you can overlap letters) and Line: No Line. Select all letters, right click, and choose Group to lock in the arrangement. You can now copy your image into Microsoft Paint and save in several formats, such as JPEG.

I can't seem to figure it out though....maybe because I have an older version of Word. I'm trying to insert a text box and nothing happens until after I highlight the letter and click insert textbox. If I try to do a second one, it just writes it over the first one. What am I doing wrong?!?! TIA!

ETA: I'm also wondering how you layer things in Word. i.e. if I want to put on initial under our name and date

Re: Need help with monograms

ME NEITHER!!! The layering is what stumps me....