TittleBitties, Hewlett-Packard is actually developing that technology as we speak. Reportedly, some of their notebooks and desktop machines should be able to pull this off by coming with these drives by later summer/early autumn this year.
The CD's are special, just like how you can buy "printable CD'S" for certain printers that support them. The CD's will have one side dedicated to data, and the other will be a special layering that you can "burn" an image onto. I don't know if you've ever seen TDK's "Disc T@2" technology, but it's similar to that. The TDK drive that had Disc T@2 would burn a selected image onto the unused portions of the CD-R. Really kind of silly, since once you fill a CD up, there's no space left for an image, except maybe around the edge for putting your name, disc contents, etc.
HP really has a good idea with this, and I think it won't be long before we see other companies joining in, as well as cool products to make colored designs and such.
~JM
P.S.- HP is making HDTV's, too. Should be out around Christmas '04. 😉