Before photoshop CS, creating texts on a curve or circular pattern was very time consuming, one way of doing it was acutally to type each letter individually, and then rotate each letter. Well, now with photoshop CS's new feature, that task is as simple as creating any normal texts.

So lets start with a new document. on your new document, create some kind of path, you can either use the pen tool and create some kind of path, like below:

or simply use the Custom Shapes in SHAPE TOOL to create a shape, these shapes has paths too. When using the shape tools or pen tools, make sure the PATH icon is selected:

By doing so, you will see the outline of the path. So, I selected the butterfly shape from the custom shapes tool, and drew it on my canvas.

Now, open the "Characters" pallete (Windows » Characters), set your characters preferences (size, color, fonts etc..), then bring your cursor to the path, and you will notice as the cursor move over the path, it changes.

When your cursor is at the position where you want to type the text, just click on the canvas and your type tool will initiate, just like as if you just use the regular type tool. Then just type away...

That's it, remember, you can do this to ANY shape or layers that has paths, so if I wanted to write in a circle, i would draw a circle SHAPE using the shape tool, then move my cursor over the path and just type away.

You can edit your texts, add layer styles and colors just like your regular texts.