I'm such an idiot. First I spelt it "raser" in the heading instead of "raster", but what I actually meant was "vector". D'oh!

But I'm glad you guys could decipher what I meant!

Yeah I've tried the "arc" method, retrocity, but it didn't really look that great.

PSP is far more vector-friendly than PS, me thinks. I could create a vector circle then select the text "A" button, hover the cursor over a certain place on the vector circle, and the text would automatically wrap around it. And voila! circular text...

So I guess PS's poorer cousin, PSP, has something more to offer after all.