Re: making your own labels?
I typically use Avery inkjet labels (get laser instead if you are using a laser printer) and don't bother with waterproofness. It just isn't an issue for me with homebrews.
I have used their pre-cut labels sheets (3.3"x4", six to a sheet) and you can print full bleed on them which is nice, but I find them a little large for 12 oz bottles. So I often just buy their full sheet labels, print with some space between my labels and cut them out.
However, in my discussions with other homebrewers, a lot of people find that to be too much work. Do some experimenting and see what is good for you! Then let us know and post some examples of your work.
Many people do not bother to label at all, but for me having a named and labeled 'finished product' is a point of pride (um, that is, when I actually do get around to it!) and gets respect from people who might look skeptically at a blank bottle of 'stuff you made yourself?' . . . :-)