Circular (Editable) Text: Simplified

Next create a new folder ‘Set’ in the ‘Layers Palette’ for all the individual text letter layers. Give this ‘Set’ a name of ‘Text’.

Next, Select the ‘Type Tool (T)’ from the Tool Bar and type the first letter you want to add to the circle. (Be sure these letters appear in your ‘Set’ labelled ‘Text’.)
Position the letter at the very top of the circle ‘Path’.

Next, (A) turn on ‘Show Bounding Box’ option.

Then, (B) then click (but don’t transform yet!) on any of the four corner Bounding Box Anchor Points (Red Circle) and you should see the Transform options on the ‘Options Bar’.

Now, look for the Center ‘Reference Point Locator’ as I have encircled in red.
(This is a zoomed in shot)

Here’s the crunch of this tutorial.

Now click and drag that Center ‘Reference Point Locator’ to the center of your document , as I have captured.

Once thats done, mouse over the parameter of the text letter until you see the ‘Rotate’ handlers appear as I have captured.

Then drag to ‘Rotate’ in the direction and location as I have captured.

Repeat this process for each letter you want to rotate on the circle.(keeping each letter within the ‘Text’ Set of the Layers Palette.)

So the finished circular text, does not appear in alignment.

Do I have to start over? NO!

To align, (A) simply make sure ‘Show Bounding Box’ is turned on.

Then (B) Select the ‘Text’ Set in the Layers Palette.

Again (as in step 4/b) select any corner of the Bounding Box, then (as in step 6) drag the center ‘Reference Point Locator’ to the center of the document.

Mouseover (as in step 7) the parameter of the Bounding Box until you see the ‘Rotate’ handlers, then (as in step 8) drag to rotate until your content with the alignment.

This is the final image.

Advantage of using this method: the text is edit able.
Disadvantage: using individual letters

TIP: Hit Ctrl + H (key) to hide the original Path and Guides from view.