Rounding text
1. create a new file, 200X200 pixels and type your text in the color and font of your choice in the center of the file and flatten it. (I used futura light at 40 pixels.) *If you are using Photoshop 5 or later, right click the 'T" in the layers palette and click render layer before flattening.
2. Choose filter/distort Polar coordinates . choose the radio button rectangular to polar.
3. After that step, you can do what you want to with the rounded text.
I made a round selection
around the text and used edit stroke 2 pixels center to make it a red outline,
then selected the center the same way and added a drop shadow for this simple
example, but you can finish it any way your imagination sees it
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