More than one or two bottles in the recent (Melb) case-swap have very professional looking labels, at lest some of them appear to be colour printed on paper and then stuck to the bottle with glue.
Printed mine onto paper then glue them on with good ol' glustik. Comes off really easily later on with no residue. Just gotta keep the labels away from moisture to stop the picture from running.
Ordinary paper will do the trick with a yoo hoo glue stick or the like. If you want to get tricky and make them waterproof, get some clear contact from the newsagents and cover the labels with it before you cut them out.
Using a laser printer rather than inkjet will help stop the colour from running if it gets damp.
On my new keg fridge I just used a bit of milk on the back of the paper to stick it to the fridge door, and it peels off easily. I've heard of others doing similar things for bottle labels; I'm not sure how long it would last in storage or in the fridge.
I checked out some waterproof labels in Office works.
They are used for industrial stuff . Tanks and stuff.
You get a program with them that you can setup to print labels onto it.
Or just work out your own template ( on el cheapo paper first).