In this tutorial we will learn how to make your text follow a path.
I am using PSCS3 but you could probably do this in most versions.

File>New, create a new image 800x800px, 300dpi with a transparent background (you can use any size image you like)
Click and hold your Pen Tool until the box with the other options pops up then choose Freeform Pen Tool.

Make sure the Paths option is selected in the toolbar at the top:














Now draw out a random path on your canvas.

Click and hold on your Type Tool and make sure the Horizontal Type Tool is selected,







Hover over the path you just drew and you should see your cursor change to an I with a squiggly line through it, when you see it, click once on your canvas and start typing, your text should follow along the path:




















If you want the text on the other side of the path, click and hold down your Direct Selection Tool then select the Path Selection Tool when the box pops up:





Go back to your canvas, click and hold the mouse button down over the text on the path.
Move your mouse left or right to reposition the text horizontally on the path or up or down to move
the text to the other side of the path.


























You can also change the size, colour and type of your font, adjust the kerning etc by using the options in
your character map if you cant see your character map go to Window>Character.
Once your happy with the way your text looks, right click on the text layer on your layers palette and choose Rasterize Type.
You can now delete the path you used, if you cant see your paths palette go to Window>Paths and
either right click on the path and choose delete or drag the path to the little bin in the corner of the palette.

If you want your text to follow the path of a certain shape like a circle or heart etc then you can use custom shapes
with the Paths Option selected in the toolbar (shown above in the screenshot) or even just select your shape and turn it into a path
by using the Make Work Path from Selection option on the paths palette.

I hope you enjoyed my tutorial.
Text On A Path In Photoshop