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I have the Epson Stylus Photo R300, and I bought it specifically because it printed directly on the disc. It was only $179.00 brand new (and that was a good 4 months ago). I've printed several cds and dvds and they've turned out great. Of course, you have to buy "printable" media, which is a little more expensive, but not outrageous. A 30 pk of printable Memorex cds came out to $14.00, I believe. So, .50 per disc to print whatever the hell you want on them. That was at Comp USA; much better deals can be found online.
Only thing to remember is to burn the content onto the cd or dvd first, then print it afterwards, as the ink does take a little time to dry, and you don't want to screw up your cd/dvd drive by getting it all wet and inky. Dry time has been about 15 minutes for me.
Anyway, I don't like traditional "label-makers," as they tend to peel, discolor, and otherwise deteriorate prematurely.
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Bad Luck City
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