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WordArt gives your words a graphic edge, turning any text into a shadowed, skewed, rotated, or stretched version of itself.
To add WordArt, you use the WordArt Gallery, which you gain access to from the Insert menu, Picture command, or by clicking the Insert WordArt button on the Drawing toolbar.
Once you insert WordArt, you can use the WordArt toolbar to change it. The toolbar appears as soon as you insert and then select the WordArt, and lets you change things like the curve of the text, the background color, the space between letters, and so on. (You can also display the toolbar yourself by pointing to Toolbars on the View menu, and then clicking WordArt.)