Add text on a path - An example

Step 1 - Create new image
Create a new image (choose File > New) with the following settings: a) 200x200 pixels; b) Vector background.
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Step 2 - Choose the Preset Shapes tool
From the Tools toolbar, choose the Preset Shapes tool.
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Step 3 - Choose Ellipse, set Tool Options
From the Shapes list drop-down, choose the Ellipse shape. And in the Tool Options palette, make sure the Retain Style, Anti-alias, and Create as vector checkboxes are marked.
Step 4 - Draw a circle
Hold down Shift and draw a circle having a radius a little more than half the width of the image. Do this yourself, or choose this step's script.
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Step 5 - Center the circle
To ensure the selected circle is horizontally and vertically centered in the canvas, choose Objects > Align > Center in Canvas.
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Step 6 - Deselect the circle
Choose Selections > None to deselect the circle.
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Step 7 - Choose the Text tool
Choose the Text tool.
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Step 8 - Set the Tool Options and Color
Make the following Text Tool Options and Materials palette settings: a) set Create As to Vector; b) set Font to Arial; c) set Size to 20; d) set Alignment to Center; e) in the Materials palette, set the Background/Fill to any darker, solid color.
Step 9 - Place cursor over circle
Place the Text tool cursor over the top center arc of the ellipse (notice how the cursor icon changes to an angled "A" with a curve below it), and then click. The Text Entry dialog appears.
Step 10 - Enter text and click Apply
Type "Text on a Path", and then click Apply.
Notes and Tips:
Text on a path can offer a nice change for presenting text on an image.
To quickly modify the image so just the curved text is visible, in the Layer palette, toggle off the visibility of the Ellipse object.

Learn More:
View a movie about this topic
Add text on a separate layer
Add a drop shadow and caption