IDE broke upon fresh install

Development Tools IDE 1.x
1

I'm using Windows 8.1
Recently I picked up my Arduino to use it again. The IDE had not been updated to the R2 which I had read about after having trouble. After removal and installation of R2 some problems exist.

  1. I cannot enter any code into the text field of a new project.
  2. In the bottom corner reads 'Arduino Uno on COM3' although my Arduino is not connected.
  3. Even when opening previous projects or example files I cannot edit the code in any of these.

I can however,

  1. Verify, upload and use the serial monitor to communicate.
  2. Edit files outside of the Arduino environment like in Notepad++ and reopen them using Arduino to show the changes.

What am I doing wrong if anything? and thank you in advance for the assistance.

2

File/Preferences: uncheck the box next to "Use external editor".