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Depends on what version of ps you have. If you have cs, you can create a path and have your text follow that path - sorry I don't know any more details on that one though.
Or, if you have ps 7, like me, you can type your text, rasterize your layer, go under filters - distort - polar coordinates - choose Rectangular to Polar, and it will put it into a circle for you. The only trouble with this is if you don't have enough text, it will not make a full circle so usually you have to make a few to see how big your font needs to be to make a full circle.
Hope this helps you, please let us know!
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