You might need to click off the 'constrain proportions' check box. In my case I used 4.7 inches for the height and width and 300 for the resolution. I recommend using a slightly larger image than what the label actually is. In the Document Size area type in the height, width and Resolution you want. This will bring up the 'Image Size' window. Then in Photoshop (with the image you want to use being the 'active' window select 'IMAGE' -> 'IMAGE SIZE.'. The Label I use has a diameter of 4.6 inches (117 mm). Use your ruler to measure the diameter of disk portion of your label. After naming and setting up your function key click on the 'Record' button. This will bring up a window that allows you to name your action and setup Function Keys to make it easier to run your action when you are done. In the action window click on the 'square on Square' icon (Create New Action - Item B in the picture). This will bring up a window that you can give a name to (maybe print actions).

In the Action window click on the folder icon (Create New Set - Item A in the picture). I usually scan in the DVD at 300 dpi and the crop it so that there is not much white background to either side or top and bottom. We will be using Photoshop's 'Action' menu to create a macro to size our image and place it on a virtual page so that when printed it fits perfectly on the label. Tools needed are: Adobe Photoshop, the labels you want to print on and a ruler. This is a guide on making CD / DVD Label templates in Adobe Photoshop 7.0

Dvd disc label template