Olivia,
Does your input data contain a "Z" component? (Open the attribute table and check the "Shape" field.)
In the past, I have had problems using the "Topo to Raster" tool. In my case I was using contour (LINE) data as input. The issue was related to "Polyline Z" line features. In your case it may perhaps to related to "Point Z" features. The way I got around this was as follows:
The workaround was to use the "Feature Class to Feature Class" tool.
After filling in all the required inputs, click on the "Environments..." tab at the bottom.
When the new screen appears, expand the "Z Values".
In the field "Output has Z Values", use the pull-down menu and select "Disabled". (Note: I also did the same thing for the "M Values", but I am not sure if this is necessary.)
Run the tool to create your new feature class.
For this new feature class, verify that the "Shape" field now shows "Polyline" for all records. Using this new feature class I was able to successfully run the "Topo to Raster" tool.
Josh