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Ok simple step guide

select marquee tool eliptical or square marquee

draw out the shape

move the cursor inside the shape right click and select create working path

select the text tool and then click inside the shape to fill that shape with text

or

select the outline of the shape to follow that shape

begin to type

here is a demo video to show you what I mean

no voice my mic is broken at the moment

[media=youtube]8Yznnbqaaak[/media]