ONE OF THE GREAT NEW FEATURES OF PHOTOSHOP CS (8)
IS BEING ABLE TO TYPE ON A PATH.

In the kitty picture, i used the pen tool to draw a path along the edge of Alex and then typed.
The image at the right was made by using the shape tool to create a path. after typing on the path, I turned the
path into a selection and applied a texture and pasted (into) one of my pictures.