I use Microsoft Publisher, using the templates available to make the CD covers which gives you the outline and size that you insert your pictures and text into. You can get very favourable results if you use photographic paper with a high resolution printer. They are useful if you want to distribute a small amount of CD,s eg demo's or for sale at gigs etc.
For the disc itself I use the software program CD Stomper.This enables you to insert pictures and text into a template of the CD, you then print them onto CD labels which are stickers and pressed onto the disc with a CD stomper, it's a little press that keeps your sticker central on the CD and presses the sticker onto the CD.
I have used this process on a demo I did a couple of years ago, designed it on the PC, burning of the CD's, cutting the labels out, putting the CD labels on, I churned out over 100 CD's in a couple of weeks, maybe a little time consuming but it cost me a few dollars for the paper. The results I achieved for a demo was excellent.
Sorry I have no pictures saved of the label and cover, I will try to post the lastest I am working on!