Its done in with layers and masks.You need writing behind and in front of the character and two layers for the character.One character layer is a mask layer so only writing infront shows over him,the other character layer is at the back with a mask over the part that goes in front of the writing.
The skewed writing is done with a nested MC.
You make round (dont skew yet) writing or what ever you want to rotate, in something like Fireworks bring it into Flash a make a MC(1) with it rotating You then make another MC(2) and put the first inside ,you then skew the second MC (2).
Sorry if that confusing its hard to explain.I know theres a tutorial out there some where.