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Using Shear is covered in the first page of the tutorial that Jon linked to. Not just Shear, but Shear with a little extra nugget.

Thanks, Pat. Sounds your method will work, but tedious as you've said.

Personally, I wish more people would get a 3d package and learn a few tricks. Not just for wrapping labels, but 3d text, 3d drop shadows, and lots of other things. There are plenty of free 3d softs out there and they are usually pretty easy to learn the simple things.

Not that I'm trying to out PS, but 3d can seriously help 2d work in so many ways.