If you mean you want the margins of the block of text to form a circle, then
no, not with Word. The higher-end text-processing apps (like Corel) can do
it.
presuming you are using Word to create the circles & text inside, mouseclick
'INSERT'...then select 'Picture'>> and then 'Autoshapes'
A drawing toolbar should appear below the document. use the round, circular
icon to make any size circle. Then, RIGHT CLICK on the circle. You should see
'Add Text' Voila!
May I suggest you use something other than a word processor to do
scrapbooking? You are limiting yourself if you don't. You need something
that will allow you to be creative or fluid. http://www.google.com/search?hl=en&q=scrapbooking+software
You may even find something do-able that's either freeware or shareware.