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Paper labels on CD-Rs DO NOT cause the same problems as on DVDs. The CD-R construction is a single piece of plastic with large tracking grooves for large pits/marks; the DVDs are a sandwich construction with very small tracks and pits/marks. Paper labels cause mechanical cupping of a DVD. This does not happen with CD-Rs. In fact, the paper label can add extra protection to the fragile upper surface of a CD-R.
However: 1) the paper label must be aligned very carefully to keep the balance even. Off-balance CD-Rs will limit the DAE (digital audio extraction) speeds of drive and may even cause the bearings some harm if the drive attempts high speeds. The imbalance is not likely to cause harm at playback speeds. Playback errors on a paper labeled disc do test out to be insignificantly higher than the errors before labeling, but that increase may be attributed to the extra handling required for labeling. I have not figured a way around this problem in my testing.
2) The paper label cannot be applied and removed from a CD-R without pulling the lacquer/alloy coating away from the dyed surface. A misaligned CD-R label means throughing the disc away and trying again. Labels can be removed from DVDs with some success, but not from CD-Rs.
3) The paper label has to be designed for good mechanical qualities. That means proper adhesion (not all labels are the same) and proper thinness. Labels that are too thick can cause problems in some drives.
In short, paper labels designed for optical discs will work on CD-Rs if the user is careful. They are no good for DVDs.
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