The CD-only distribution seems a bit archaic.

You might want to consider CDBaby as a distro method, and
allowing people to download the material, rather than making
a physical CD.

Also, Cindy Kallet both singly and in her collaboration with
Grey Larsen uses a very interesting artists' web site
service from Noteway ( http://www.noteway.com/ ) which allows
for what I think is a great distribution methodology.

She and Grey stream individual tracks for free, sell them
singly for a dollar each, as well as the whole album downloadable
and individual CDs.