There have been a few people asking if you can place text around a circle in Adobe Photoshop. This technique is reserved for Illustrator but there is a way of doing it in Photoshop and, although it is a fairly slow process when you first start, you will speed up as you learn the technique.
If you want your text to follow a path then you will need Illustrator.
Ok, here we go.
To begin you will need a circle that your text will be wrapped around.
(The next bit will be using guides to find the centre of your circle, make sure you have Snap to Objects enabled so the guides will snap to the centre of your circle)
Place two intersecting guides through the centre of your circle and one running along the top edge. Place the top guide the distance from your circle that you want your text to be. (Drag your guides from the rulers (CTRL/R) surrounding your canvas or go to View/New Guide and enter the vertical and horizontal pixels. Make sure they do run through the centre of your circle).
Place the type tool so it's in line with the guide at the top of your circle and type your first letter. This can only be done one letter at a time so if you have a lot of text to go round your circle, good luck or get a copy of Illustrator.
CTRL/T (or Edit/Free Transform) the letter, grab the reference point that appears in the centre of your text and drag it to the centre of your circle where the two intersecting guides cross. It should snap to the point where the two guides intersect but if it doesn't, just get it as close as you can.
Now rotate the text around the circle to the position you want and apply the transformation by either pressing enter (return) or clicking the check mark. The latter is PS6 & 7 only I think but I could be wrong.
Follow these steps for each letter and that's it.
This is a slow process at first but you will speed up as you learn the technique, I promise .
Warped TextContributed by SPYDERIX To simulate this fx with whole words (not one letter at a time as above) use the Warped Text filter found on the tool bar when you select the Text Tool. With little effort you can use this to wrap text around a circle. Make sure you check Ark, Horizontal and make changes to the Bend only. The problem with this method is you are limited on the amount of bend you can put on your text.