You have WP 2.7 if your admin screen looks like this:
Adjusting the size of the text editor

The default size of the text editor in WordPress is fairly small.  If you’d like more real estate for your writing, there are a couple of ways to do it – one temporary, the other remains in effect until you change it again.

NOTE: This applies only to the VISUAL mode of the text editor – not to the HTML mode.

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