Convert type to shape in Photoshop

In Photoshop you can convert type to shape. Right click on Type layer and choose Convert to Shape (1). Select Path, Direct Selection tool or any of Pen tools and work with each letter as with separate shape (2). After modifying type you can save it as custom shape for letter use. Select any of Pen or Path selection tools, right click and choose: Define Custom Shape.. from context menu or go to Edit > Define Custom Shape...
convert_type_to_shape
Steps to convert type to shape in Adobe Photoshop

Reference:
Photoshop / Creating type effects

Product used in this tutorial: Adobe Photoshop CS5

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