I have a Canon iP4000, which has a special CD tray that you insert into the front. I can use Nero Cover Designer to send the print job to it, and have designed my own template.

I have a range of CD-R makes, and, although the readability and permanence of the results varies by make, I would say that generally the ink takes weeks or months rather than hours or days to dry, and for ever after you have to be careful not to smudge it by, for example, fingering the top surface ... but then, as with vinyls, you should be handling them by the edges anyway, shouldn't you!

It's quite a business, because the length of time that the ink takes to dry means that you can't just put them back in the boxes with their booklets. I leave the booklets out of the boxes and leave the boxes right way up horizontal for a few weeks, and use them only in the tray rather than the slot type of drive until I think the ink is well and truly dry.

Legibility is highly dependant on the pre-existing surface. An all-white background is obviously best.

I've not tried colour printing.