LOL. I'm a huge fan of Illustrator, yet, this is one area where it's amazingly not strong. If you have access to Corel Draw, extreme custom envelopes are dead easy and intuitive. One this easy is literally, 10 seconds to do. Not only that, you can save the envelope and apply it to different text.
This can of course been done in Illustrator, but Illustrator doesn't provide the proper constraint controls that help prevent you from "warping" it out. So you have to go very carefully in Illustrator and get the best result you can as opposed to a perfect result in Draw.
This envelope took me about 15 seconds to shape the word, then I saved that as an envelope. Then I typed a new word and simply selected that last envelope as the envelope for the new word. Envelopes are very powerful in Draw.
http://www.mediafire.com/imageview.p...giye1j&thumb=5