Lightscribe is a new technology that uses a special disk drive and special media that burns a "label" directly onto the CD or DVD. Since it's lasered into the CD or DVD, rather than printed on paper, there is no ink smudging or peeling.
It does require special CDs that have a special coating on one side for the printing. Once you have burned the data/music CD or DVD, you just pop it out and flip it over to burn the silkscreen quality image right on the disc.
At present there is only gray scale burning, but it is in the works to create a color lightscribe technology.
Some of the Cons it takes 25 minutes to laser the picture and the CDs are more expensive.
Lightscribe is definitely a cool feature!