I've been working on learning how to do this LITERALLY for days. I've checked out several tutorials and finally found one I could follow!

You would think that this is very basic, but there's lots to learn because you're working with a vector shape (the ellipse) and the Character palette, along with typing text on the ellipse and placing it where you want it.

I challenge you to learn this technique just in case some day someone asks you to create text in a circle!

The pdf file of instructions has been placed in the Digipets Files area online (Photoshop Tutorials) with the title: "Make Text Go Round in Circles".