If you're going to do this with After Effects, AE has an option to set a text object to follow a mask. Simple.
In Photoshop, you can draw a path, and then when you put the text cursor over it and click, you'll be able to type along the path. (You'll know you're choosing the path because the cursor will change so the baseline crossing I-bar becomes slanted.) To draw a circle for this purpose, select the Ellipse tool and in the Options bar click on the Paths option on the left (the box in the middle with a pen over the rectangle). Hold shift while you drag to draw the circle.
i don't know what i'm doing wrong but once i create the circular path, i select the type tool put it over the circle's outer line and it will not follow the path.
i'm working with ps 7, so you know.
also can you move the circular path once you draw it?