Whether you can do this effectively in Photoshop or not depends on your version. The 'type on a path' feature used to be only available in Adobe Illustrator, but it was first included in Photoshop in CS1 I belive.
If you have a CS1 or CS2 version of Photoshop all you need to do is make a path in the shape of your swirl, select the type tool, click on the start of the path and type away. Your type will flow along the path.
Have a look in Photoshop help for:
'type on a path' and 'pen tool'
(The pen tool is what you will use to create the path).
If you don't have a CS version of Photoshop but you do have an older version of Illustrator, you could always do it the old fashioned pre CS way. That is do it in Illustrator and then import into Photoshop.