you can draw out an ellipse/ circle with the path tool, but chances are you wont be able to make it exact.
IMO, the best way to put text onto curves / shapes, is to do the text in illustrator, then import it in.
you can make the text .eps / create outlines so you dont encounter any font problems. if creting text to outlines, keep 2 ill. files, one as .ai, and the outline version as .eps, that way you can still amend the text if you need to
You can also draw an elliptical picture box, size and position it.
Go to Item->Shape->"Squiggly free form line" at the bottom. Then with your shape still selected go to Item->Content->Text. Now you can type along the outer edge of your shape.
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