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Not exactly sure what you're trying to achieve... Also, I very rarely use text tools for my work; don't have a use for them..
I forget how, but you can convert PS text into AE text; no need to cut out each letter. Then, you can create a mask spline on that text layer. Select the mask in Path Options, and then adjust the Margins..
You can convert PS text layers to native AE text using the respective command from the Layer menu. To make it follow a path, simply draw a circle mask on the text layer and assign it as the path in the Path Options, then animate the left margin property.
I don't think that command was available in version 6.5.
Please note that you need to use at least version CS3 of After Effects to be running without emulation on an Intel Mac (which you seem to have.) Emulation limits performance, multiprocessing and memory usage so it's note really recommended.
- Jonas Hummelstrand