This will just be a summary of the options available in the character and paragraph palettes for quick reference. I will not be explaining these options in depth as they are described quite well in the Photoshop 6.0 User Guide on pages 258-267. The Character Palette Menu allows you to apply faux bold and faux italics to fonts that do not include these styles within the typeface. You cannot warp type that has Faux Bold formatting. When vertical type is selected the rotate command becomes available.
Factional Widths varies the spacing between characters to make it more readable.
The Warp Text Dialog box allows you to bend and distort type in a variety of ways. The style menu allows you to choose from 15 different warp styles. Warp effects can be applied to the entire type layer whether it is line text or paragraph text. On paragraph text the warp is applied to the bounding box. Once you choose a warp style, you can adjust the effects using the other options in the dialog box.