Open new image (file>new). For this demonstration, I opened the new image at 6"x6" at 300 ppi, with a transparent background.
Click on the preset too and chose the ellipse shape. On the preset toolbar at top, chose draw circle. Set line with to 5 (just makes it easier to see). On the material palette make sure the foreground color is filled and the background color is null (no color). Draw your circle and click apply.
Now get your text tool. Chose your font and create as vector. Set the foreground color on materials palette to null and fill the background with color.
Place your cursor on the circle until it changes to an open "A" with a half circle below it. Left click and start typing. Don't worry if you overlap, we'll take care of this momentarily. Click apply when you have finished typing.
Your text will be bound by a box with nodes at each corner and in the middle of each line. Move the cursor over one of the corners until it changes to a cross of arrows with a rectangle above. Left click, hold and move down (or up) until your text is clear along the circle.
Now click on the plus sign next to the vector layer to show each of the vectors. Click on the eye next to the new ellipse layer to hide it. Right click on the vector layer and convert to raster layer. Your text is now ready to be used.
You can use this technique on other vector shapes as well. Go have some fun. Here's one using a vector in the shape of lips.
Font(s): Pea Weenie; Pea Porridge Hot