In Photoshop's "character" window, (you can access it by clicking "window" in the menu bar and then clicking on "character") There are many different options for editing text... To make text wider, not bigger, there is a box that has the default of 100% entered in it. There is also a small graphic of the letter "T" (T for Text) next to it. One graphic has a tall skinny T, the other has a short fat one. To make text wider, type in an amount larger than 100 in the box with the shorter, fatter T. This will make your text Wider and not necessarily bigger.
To get text to go diaganally, In photoshop, I don't think they included a "path type" tool, but I'm really only familiar with 7.0 (they could have included it with newer versions) anyway, your best bet for diagonal text would be to type what you want, then do a ctl+T(windows) cmd+T (mac) and then use the box's anchor points to either resize or rotate the text to the desired angle.