To put text on a path, you first need a path, obviously. Choose the Pen tool, shape tool, or line tool. Next go to the options bar and make sure the "paths" option is active, then create an open or closed path.
Once your path is created, switch to the horizontal type tool. Bring your cursor close to the path, and your cursor will change slightly, and the status bar will change to say, "Click to create type on a path." Click, then type... that's all there is to it! Well, you do have to click the commit button to accept the text.
taken from
http://graphicssoft.about.com/cs/photoshop...textonapath.htmwhenever i put the horizontal type tool on the path, the cursor never changes.