i was talkin bout doin it in Illustrator, an easier way to make the pointy circle is to make a perfect circle by holding down the shift key, then add more anchor points by going under "object" menu, "Path" then "add anchor points", do that a couple times so theres alot of points, then under "Effect" menu choose "Distort & Transform" then "Punk & Bloat", move the slider til you see how much of the effect you want.
for making seals/emblems, i think its better to make them in Illustrator, then you can always bring it into photoshop after.