Open a new image. The size of the new image is dependent on the size you want your text to be. Choose the Line Tool → 

Set the line type to Bezier, choose Create as a Vector, and draw a bezier line. In this example, I drew my initial bezier line and then for the first control point, I clicked above and to the left middle of the initial line. For the second control point I clicked below and to the right middle of the initial line. Any bezier line shape will do.

Now click on the text tool →  .

Move the Text Tool cursor so it touches the bezier line. When you do so the cursor will change to an A with a smile under it.

Once you have the Text Tool cursor touching the bezier line, left click. This will bring up the Text dialogue box. Choose Create as Vector. You can use anti-alias, or not. Set your color, font style etc... View the layers palette, and turn off the bezier line's visibility.

De-select and viola, there is your text on a path. To do text on a circle repeat the same steps, except use a circle instead of a bezier line. Just remember to create the circle as a vector object, that way you can delete the circle layer should you want to, leaving just the writing.

You might want to experiment with, from the Text Dialogue box, setting the alignment to center, left and right. The text align option will effect how the text is aligned on the path or circle.

You don't have to use the Create as Vector option when placing your text. You can use the Floating option. If you use the Floating option, you will be prompted to decide whether you want the text to be placed on the Raster layer. Choose yes and your text will be placed as a floating selection. You can then turn off the entire Vector layer, leaving the raster layer and your text on a path or circle visible.

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Should you have any questions relating to this tutorial, then please feel free to email me, and I'll try to help :)

hugs, Michele