Whenever I'm making Take Control Library CDs as door prizes for Mac user group meetings (which is, honestly, the main reason I burn CDs of any sort), I've taken to using the Dymo DiscPainter to label them, in conjunction with DiscLabel from SmileOnMyMac (see "Print Classy Discs with the Dymo DiscPainter," 2008-12-01). There are other disc labeling programs out there, several of which I have, but DiscLabel floated to the top when I needed to label a CD.
The recently released DiscLabel 6 makes creating labels easier than before, thanks to a streamlined interface for creating new designs and an inspector that simplifies editing object, image, and text properties. Image importing has been improved, so imported images can now be added to all label and packaging design elements simultaneously, and a new montage tool lets you create montages from multiple photos. SmileOnMyMac also added 80 professionally designed template sets for those who just want to add some text or import track lists from iTunes, iPhoto, iDVD, the Finder, or Toast.