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What up!
Met up with the same problem last week when making some t-shirt graphics. To my knowledge PS doesn't include a feature to do circulair text paths. Adobe wants you to go out and buy Illustrator for that! It could be done in PS by setting up grids and angles but it's far to much trouble if you have Illustrator handy. Fire it up.... build your circulair text....then export as .ai and slap that shit into PS. That should get you there, if not let me know.
When all else fails, use Corel Draw 10!
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