How to work with Type paths in Illustrator:

STEPS
Step 1
Create a document with the following dimensions:

8in. X 8in.
CMYK Color
Raster Effects: High (300 ppi)

Step 2

Use the Ellipse Tool

Start with a perfect circle (hold Shift) Use your own colors.
Don't make your circle too small. Make it 2.5" or bigger.

Here is the circle!

To make your name go
around this circle, you need
to create a type path that
matches your circle.
The easiest way is to copy
the circle #1 and paste it on
the top:
EDIT > COPY
Object > Lock > Selection (to
prevent the initial circle from
being accidentally selected)

EDIT > PASTE IN FRONT

This is what you have right now:

circle #1 on the bottom (locked)

circle # 2 right above it
 Choose Type on a Path tool.

Open Paragraph palette: Window > Type > Paragraph Select Center alignment.

Click at the bottom of the circle.

You'll see the cursor blinking at the top.

Type your first name.
Then choose Direct Selection Tool
(white arrow)!!!
 This is what just happened:
When you clicked on a circle with a Type
tool - the top circle #2 disappeared, and
became a Type Path. Like on the picture
below:

Bring up Character palette. Choose Direct Selection Tool

(white arrow) Change Font size to fit your design.
 I also want to spread out the letters.

The option you need is called Tracking - it adds spaces between the letters.
 Center Bracket

Start Bracket End Bracket

You can see brackets only if you are at Selection tools (black or white arrows)

Use your Selection tool to select the top circle with you name
Ctrl C (to copy)
Ctrl V (to paste)
Grab the center bracket and move it down

With Type tool: highlight the text in the bottom.

Type in your last name.

To make your last name readable, we need to flip it.

Grab the center bracket and move it inside the circle.
To move the last name OUTSIDE of the circle, we need to shift the baseline (the path
stays, but the text will move)
In Character palette, use Baseline Shift option to move the name below the path:

Select your first name and shift the text above the baseline:
More details:
Add a square to the design.

Object > Unlock All (to unlock the bottom circle)

Select the entire logo and align all shapes.
Select the Twirl tool:

The cursor for the Twirl tool looks like a brush (circle). The effect is applied only inside
this circle.
We want to apply effects to the entire square, so we need to make the brush big enough
to fit the square inside it.

Double-click on the Twirl tool

In the Options window, enter the brush dimensions that are bigger than the square you
have.

Have the square selected.

Start clicking to deform the square:

To add more designs to the logo, we are going to use Symbols (pre made vector clip
art) To view more symbols: click on options menu. Choose Open Symbol Library.
Choose any category you want.

Drag a symbol onto your logo.

Note:
if you want to change the appearance of a symbol - go to Object > Expand ... Symbols
To add a drop shadow:
Effect > Stylize > Drop Shadow

Now you can change the colors and fonts to make your design more fun. You can also
add more symbols. But... do not overdo it!!!