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How about creating a special p class with margin-top:-1em? That way you could justify one line as an independent paragraph and not show the extra empty line when you break to the second paragraph (which would be class="special").
Different font sizes on different browsers could definitely foul this scheme -- but creating the justified line with enough "play" might allow similar rendering cross browser unless system fonts were set to large.
Currently, DHTML doesn't support clipping on a curved path across the board. With the new SVG stuff there maybe hope, but for now you'd probably be mired in so much html markup your page would take too long to load and destroy the whole experience.
Lots of sites just do the text as a graphic rendered in a screen font to fool the eye, with a transparent background to load faster. But the load time could still be considerable. Makes updating a pain, too. (And there goes your spider food.)