When using Cambria (included with Office for Mac 2011) in PS, I get this huge insertion bar (err...).
But seriously, in the left hand example the cursor is positioned after the number 1, and the bar reaches way below line 2! In the right example, the cursor is positioned after '2' for comparison. The type palette is shown.
Other fonts perform as expected (the insertion bar matches line height).
doh, not allowed to post images.. here it is: