The best solution for small-volume production is to use inkjet-printable discs. The best medium I've found are Taiyo Yuden CDs and DVDs with "Watershield" coating. This is a gel-type coating that is highly water resistant even with dye-based ink. You can hold it under hot water without smearing, whereas ink washes nearly completely off from standard coatings.
Round labels by Neat-O work well. They won't come off if applied correctly, and remain balanced. However, bubbles may appear if subjected to changes in temperature and humidity.
For higher production in a single color, look at thermal printers. There are a few left, but this technology is losing out to dedicated inkjet printers (with stack feeders).
It is relatively inexpensive to have blank discs silk-screened with your company name and logo. There's not a good way to customize these labels unless you use a suitable permanent marker.
Lightscribe discs are expensive, extremely slow to produce, and the same, ugly brown color throughout. The time factor alone kills this idea for me.
