I just soak my bottles in hot water. For the most part, the labels come right off. For the stuff that doesn't, I soak it longer then scrub with a scouring pad (the copper kind, not brillo pads or something too fine). After that, I wash and serilize them.
Putting on my own, I only do that if I'm shipping beers out of my friends or for special occasions. Like Captain Damage, I use photoshop as well. My main body labels are 4x3 inches and for the neck, they are 1 1/2x4 with a slight angle cut on the edges. They don't fit the necks perfectly, but they do okay. I just use plain old Elmer's glue to put the labels on, but I like the idea of going to Staples. Probably much better quality than the home printer style.