With regards to the labels, yes very much like that, in fact if you have nero that will let you design cd labels. You have to make sure that the labels you buy are compatible with nero if you go that way though.
I'd still suggest getting a label kit if first if only to get the label applicator which ensures the labels are stuck on the CD centrally, it's possible to do by eye, but it's a pain and if you get it slightly out the CD tends to vibrate a lot in the drive (not good for the drive)