I don't know if it's a glitch

[Guest]

Something's kinda off odd when I make Circle Text, Normally the letters are on the outline but now it does this:

[War Unicorn]

Steps to repro? Just using the Type Tool on a path produces this?

First thing I noticed is that you're using an older version. (Logo was the dead giveaway.)

[Guest]

Ohh Okay, thanks!

[edgrimley]

Check the baseline shift settings in the Character panel.