Create Path Type with the Text On Shape Tool
This new Photoshop Elements 10 tool enables you create type that flows along the perimeter of any shape. If you want your type to flow in a circle, wave, stair step, or any other shape, you’re now in luck. The great thing is the text is easy to create, totally editable, and resides on its very own layer.
To do so, follow these steps:
Open the Editor and choose Full Photo Edit mode.
Open an image or create a new, blank Elements file.
Select the Text On Shape tool from the Tools panel, or press T or Shift+T.
Select your desired shape from the Select shape type drop-down menu in the Options bar.
Drag your tool over the image to create the shape.
To constrain your proportions, hold the Shift key down while dragging.
To draw from the center outwards, hold down the Alt (Option on the Macintosh) key while dragging.
You can transform your shape by choosing Image→Transform Shape. For details on transformations.
You can specify additional options, which are common to all of the type tools.
Position your mouse over the path, and when the cursor icon changes to an I-beam (capital letter I with a crooked line crossing over), click the path and type your text.
The text wraps along the shape’s path.
If you type more text than can fit on the path, an overflow icon appears.
When you are done entering your text, click the Commit icon.
Elements creates a new type layer. You can edit any attributes, such as font and size, just as you can with point or paragraph text.
You can also refine your shape path by using the Refine Path tool, which appears in the Options bar when the Text on Custom Path tool is selected. Just be sure that you have your type layer selected before working with this option.