Solution

In the Layers palette, right-click (hold Ctrl and click on a Mac) on your text layer and choose Convert to Shape from the menu that appears.

Converting text to a vector shape

The text will be converted to a vector shape layer. This will be reflected in the Layers palette, as shown in the example on the right.

Converted text layer

Now select the Direct Selection Tool (4), and adjust the shape of the text by clicking and dragging the handlebars and anchor points. You may wish to use other tools, such as the Add Anchor Point Tool, Delete Anchor Point Tool, and Convert Point Tool, to adjust the points as necessary.

Converted text layer

WARNING Shape Smart!

As with rasterizing text layers, once you convert a text layer to a shape, you won't be able to edit the text that you originally typed, so make sure that everything's correct and spell-checked before you begin the conversion!

Adjusting the path using the Direct Selection Tool

If you can't see the paths and points clearly, double-click on the color patch of the shape layer to bring up the Color Picker, and temporarily change the shape color to a lighter shade that's easier to work with.

These examples show how I adjusted the curve of the first "h" to remove the overlap it created. I deleted several of the anchor points, and then adjusted the remaining points to match the curve to the font.

Adjusting the path using the Direct Selection Tool

■^j ci&npshape psd ® 400% (Photoshop. RGB/B)

■^j ci&npshape psd ® 400% (Photoshop. RGB/B)

Adjusting the other part of the curve

Adjusting the other part of the curve

Here's the final result:

Adjusted text

Adjusted text

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