I've seen these instructions posted in numerous places, so thought it would be good to share here as well. It's awesome to see it done on a page!!
In Microsoft word (2000 and up):Open a new document.
1. From the top tool bar choose ‘Insert' --‘Picture’-- ‘Word Art’ OR click on the WordArt icon from the bottom tool bar (the tilted blue A)
2. Click on the sample that looks like an arch (in my program, it is the third on the top); click okay.
3. Type in the text you want. You can change font and size here. *indent one space at the beginning of your type. Click ‘okay’
4. This will display it in your document…click on the image so the box forms around it. Your WordArt tool bar should be visible now.
5. On the tool bar there is an “abc” icon…when the cursor is over it, it should read “WordArt shape”
6. When you click on this, you can see several different shapes…click on the one that looks like the letter O…once you do this, your text will look a little bit squashed…just resize it like you would any other image. To make a perfect circle-- right click on your image--choose Format WordArt--Size--and change the width and height so they are the same. * You can make your circle the exact size of your punch, circle etc. by measuring them before hand and inserting those measurements.
( I wanna thank Skrapnfreak for posting these for me to copy over here! )