Radial Stretching
 

I have a question for you Photoshop-savvy GFF members out there.

Well, the question pretty much explains itself in the attached jpeg, but it's like this:

I want to know how you can stretch a bordering portion of a circular picture/logo/etc. towards the center of the circle. In the picture, I'm trying to stretch the red/black w/dots portion and make the central blue area smaller. This would be easily done if the picture was square (as shown in attachment), I just want to know how to do it in a circle.

I already tried the Pinch filter but it throws off the image proportions.

EXTRA STAGE::
I'd also like to know how to convert a square image (i.e. Catcher in the Rye text) into a circular image.

Thanks in advance. :cow: