Getting the Labels Off
I'm only adding a little bit here. I only use OxyClean, like many others, but what I do is put the bottles standing up in a cooler, then fill them with hot tap water. Dump a bit of oxyclean in the cooler, and fill it with hot water.
It holds the temp for quite a long while, after a couple of hours the labels are floating off, or they come off with just a slight pull.
Sometimes there's a bit of label residue that hangs around on some bottles, that comes off with a quick scrub sponge.
Putting Labels on
When I did label my bottles, I used standard printer paper, cut it up with scissors, and then used some milk on a paint brush, just on the edges of the label, to get it to stick. You have to hold it there for about 3 seconds and then set it to the side to dry. Those labels come off extremely easy.
What I do now
These days I've become lazy, I just use the little Avery round labels and place them on the bottle caps after bottling. Much easier.