[jplarson]

Hey, nice to see other folks getting into this part of the hobby. Personally I use Ulead PhotoImpact 12 or X3 to do mine. Other helpful programs are Gimp or Paint.Net (lots of add-ins available). I print on glossy photo paper stock and use a small cutting board to get 2.5" x 3.5" size. In the program itself I use 300 dpi and size it 3" x 4" and add in .25" margins.

Good luck!