Adobe Illustrator s definately the best. You can import images from Photoshop, and images do not lose quality when they are enlarged. Its a fairly expensive program, and takes some time to master. You can also, vector, skew, and have the type assume any shape that you want.
You can enlagge images gradually in Photoshop by going to IMAGE SIZE, setting it for "percent" (rather than pixels, inches, cm, etc.), and typing in 110%, & repeating until you have the size that you want. That way, the computer doesn't have to "invent" all the pixels in between at once. You can skew with Photoshop, also. Go to EDIT>TRANSFORM> and select what you want to do. The type needs to be rendered first, to turn it into an object. If you rasterize it, it becomes uneditable as type.
Hope this helps.