Jim Fish - to make text go in a circle you should use adobe Illustrator
just make a regular circle, then go to your tool box and hold the cursor down on the text option so a bunch of other options come up. select the T with the squiggly line next to it. then click on the circle and start typing.
when u want to bring your illustrator images into photo shop you can either save as a .eps and open it in photoshop or select file/export while in illustrator and export it as a tiff. dont go less than 100 dpi tho or it will look like crap