To create this effect it takes the VM Natural plugin,*the SPEED effect*

and have included the zip here for download.
UNZIP it into your PLUGIN folder for PSP.
*VM Natural Plugin*

This was made in PSP 8 but can be done in 7.
I started with a 600 x 400 image, but it really depends what word/words your putting on it. So your choice.
I used black background, again your choice.

Click on your PRESET shape tool Choose ellipse, have retain style, anti-alias and create as vector, CHECKED

Here in this sample pic I didn't have my retain style checked because I was working on black and for it to show up good, I made the ellipse purple. Now you ONLY use this preset shape tool IF your wanting your words on a CURVE.. if you want them straight across the page then you'd just type the words as you would normally do and skip the preset tool step.

Next click on your Text toolIn this sample below you see that your curor changes to an A with a rocker on the bottom.
In PSP 8, it depends on where you click the text tool, where the text is on that curve. Click over to the left, then its positioned more to the left..etc. In PSP 7 it doesnt work that way.

Type whatever words you'd like, using whatever colors you want. Here I had the forground color solid green and the fill color (background) as a bright gradient.

Open your LAYERS palette and you will see the BACKGROUND layer and the VECTOR TEXT layer click the lil + thats to the left of Vector and it will open up to show the ELLIPSE layer. X it out (HIDE)

Then RIGHT click on the text layer and CONVERT TO RASTER LAYER

Now you should have ONE background layer. DUPLICATE it two more times where you end up having 3 background layers.

Have your setting like the one below on VM Natural... ONLY thing you change on it for each of the LAYERS is the SPEED control. On the first background layer SET the SPEED to 80.. on the second... 90....... on the last background layer set the speed to 100. Dont forget as your working on each background layer to hide the ones your NOT working on and HIGHLIGHT the one that you ARE working on.

Like this

Now you can save this in PSP format. In PSP 8 you have to save as ANIMATION .psp format. In PSP 7 you just save in .psp format.

Open your PSP Animation shop and go to FILE /OPEN and find your .psp file you just saved and now you can save as a .gif animation.