I use Adobe Illustrator and print to a Epson 2200 printer using Epson matte archival paper stock. You get fantastic imaging quality out of that combination and the prints are far better than the cheesy, glossy stuff rolled out by most companies printing CD covers. Plus, the cover will most likely last 50-75 years so the grandkids can laugh at the funny little recordings grandpa did back at the turn of the century. Of course, it is an inkjet print so don't pour water or beer on it!
If you are looking for Illustratior templates, do a google search. They are all over the place and free as downloads from graphic arts companies.
The downside to Illustrator, of course, is the price and the complexity. But it integrates seemlessly with photoshop and handles text much better than typical photo editing packages.
