From : http://www.hypergurl.com/pspcircletext.html

PSP Tutorial

Here's an easy to follow PSP tutorial for placing text that follows a circle. Screenshots are used to guide you through the necessary steps.

Text Following a Circle

STEP 1

Open your Paint Shop Pro program.

Select new image. We will make this new image 200 x 200 with white background, You can experiment with your own sizes to suit your needs.

Set both foreground and background colors to white, you can experiment with your own background colors.

STEP 2

Click on Layers || New Vector Layer and make sure that "mask is enabled" and "mask is locked" is checked.

STEP 3

Click on the Preset Shapes tool.

Select Toggle Tool Options. and apply the following settings,

Preset Shape = Circle or Elipse
Antialias = Checked
Create as Vector = Checked
Line Width = 1

STEP 4

Place your cursor within the image, right click and hold the mouse button down while pulling shape out to desired size.

Your image will now look like this on the right.

STEP 5

Select the Text Tool .

Right click on your image to bring up the Text Screen.

Type in your required text.

Set your font preference. Set your text size and color preference. Make sure that Floating and Antialias is checked.

STEP 6

Click ok and your image will have the text applied but the floating ants will still be around your text.

You can now add additional effects such as Drop Shadow,

(Effects || 3D Effects ||Drop Shadow) or other filters from plugins such as Eye Candy or Blade Pro.

STEP 7

When finished applying filters, select
Layers || Merge || Merge All (flatten.)

Selections || Select None. Then Save As.

You can now design with Circular Text.