Given my luck with storing stuff on CDs/DVDs, I wouldn't use them even if my life depended on it. Use a large hard drive -- worst that could happen is that you'd have to digitize your whole collection again.

If you insist on DVDs and haven't found a decent labeler yet, try RonyaSoft CD DVD Label Maker. I know you mentioned you're looking for freeware stuff, but I doubt $20ish is a large investment :)