How would I go about making my text like, follow the outline of an image?

I have photoshop 5.

There is a new feature in Adobe CS that allows you to write on paths (made by the pen tool) and you can make a path along the outside of an image and then use the type tool on it. You can do that only if you have Adobe CS or above. =x You can always use the 'Warp Text' function but they are limited in shapes.

How do you do the warped text?

After you've written something, look at the text toolbar. At the end, one of the buttons should have a T and a little curve underneath. Click it and pick a style. Change any of settings to your linking.

^ In addition to things like that you could always angle the text using the move tool.

It might be helpful if you're trying to make your text follow the outline of a (mostly) straight picture.