Create A Writing Speed Test Application?

I'd like to create a simple application to determine the writing speed. In this application I want to view a line of text (may be more than one line) to the user to write it. And I want to select (higlight) the character the user pressed in my line and to move like a cursor to the next character (or to put underline under the current charater). How can I do that? and what is the object or component i must use to insert the text. Finally, if I want to make it multiple lines how to determine the enter key pressed by the user and how to move the cursor to the next line?