Open a new flash document and leave the default deminsions of 550 X 400 pixels. The background doesn't matter, leave it white or choose a color of your choice.
Draw out a circle on the canvas any color. To make the circle completely round, hold down the shift key while drawing out your circle.
Click on the selection tool and click on the circle to select it.
We now will align the circle to the center of the stage. Click on the Align Tab on the Align & Info & Transform panel (if you don's see it click Windows>Align) to activate the options. First click on To stage, then click Align Vertical and Align Horizontal shown below.
Click on Frame 60 and right click and select Insert a Blank Keyframe (the shortcut for inserting a blank keyframe is F7). Your circle should dissapear.
Now we will type some text. Click on the text tool and type "Circle" on the canvas. You want the text to be relative to the size of the circle.
We will align the text to the center of the stage the same way we aligned the circle.
You can not morph from a shape to a text field so we need to break the text apart. With the selection tool click on the text "Circle" and select Modify > Break Apart (Ctrl B it the shortcut). The first Break Apart command will seperate the letters. Break Apart again to actually break apart the individual letters.
Click anywhere on your timeline between the two keyframes, go to your Properties panel and change tween from none to shape:
While the shape tween might be just what you wanted, we can make some adjustments so that it looks more solid. We will add some keyframes to the tween to give it more of a solid appearance. Click in frame 59, press F6 (to add a keyframe), and then click in frame 58 and press F6. Your timeline should look like the photo below:
Now test your movie and notice that is does appears to morph smoother with the added keyframes. Each circumstance is different and you will need to play around with the placement of your keyframes.
and click on the circle to select it.
and type "Circle" on the canvas. You want the text to be relative to the size of the circle. 
