Here is my finished product:
1. Circle Text Path has to be made in Photoshop CS (not Elements) - follow this tutorial on YouTube. Love YouTube. Love this man's voice.
2. In Elements 7
- create a circle, put my photo on it, Ctrl G (group to previous layer), saved as png file
- open a new file with transparent background
- make a circle frame with shape tool, black
- make a regular circle with shape tool, white and place on top of black frame
- add circle photo
- add text path