I use MS Word for creating disk and cover labels. You can create a template by creating graphic and text boxes after doing some measurements on the paper or labels you're going to use. Then save it as a .dot file. When you want to use it go to File/New and you'll get a dialog of templates. If you don't see the one you want, click through the tabs on the top of the dialog to find it. It works for me. If I want to do complex image editing, I use Photoshop then do Insert/Picture/From file to get it into the Word doc.
