Man....
Do you have (vl-load-com) in any lisp files that load? If not try that, and then try the code. I just opened a new drawing, drew a text entity, copied the code from my first post, then the select method, and boom.. there way a polyline, and a selection set. Then I rotated my ucs around the z axis, 90 degrees, ran the selection part again, and the polyline is drawn but no selection set.