Sam - you must have a lot of friends
If you have someone local to go to I would personally recommend that approach: faster turnaround, someone you can talk to before and after the sale, etc. You didn't mention it, so I don't know if you just want CD duplication or if you want the whole package. In either case, you should be aware that what you'll be getting for a 'short run' is just CD-R duplication. I think there's quite a few places that can do just the CD for about $1 or less per CD, but then you still have to package it. If all your doing is stuffing a disk in a sleeve, then that's probably good enough. If you plan on selling it, you need to go with a larger package. There's a lot of options out there, but the main thing to remember is these people are out to make money, so be sure and check everything your signing up for. You can end up paying for stuff that you hadn't planned on. For example, you'll see a lot of places that will take your finished artwork and make the insert for you. What you might miss is that if they have to alter your artwork in anyway, you're gonna pay for it, in addition to any other fixed fees. Unless you've already got your bar code, that's where most of the 'alterations' are made. In general its worth the money they charge, but if you weren't aware there would be that charge it can be a bit of a surprise.
A 500 disc commerical run will cost anywhere from $700-$1000. What's included in the price? Printing a tray card (usually 4 color) and a 4 panel (1 fold) insert, also usually 4 color. Most places only give you monochrome CD label printed directly to the disc, and of course, the CD-R itself. A jewel case and shrinkwrap complete the package. The turnaround on this kind of job is usually a couple of days (if done with someone local) to a week or more (if you have to mail things off).
Options range from complete artwork design, larger inserts (up to 6 or 8 panel is still relatively cheap, but after that it gets pretty expensive, because then they become booklets that need assembly and stapling), color on-disc printing, bar-code assignment and online registration (usually CDDB).
Most places only do full color on-disc printing if you have a glass master made, which usually only happens if you want a run of at least 1000 copies. You also get a better quality of disc as a result (and the overall packaging is higher quality too). One thing to remember about that is turn around for these kind of jobs is usually a week minimum since most places you'll find locally have to ship your project somewhere else to get it completed.
BTW - the turnaround times I'm mentioning assume you have no glitches with the artwork or the production.
Sorry for being so long-winded - hope at least some of the info is helpful to you and not just a bunch of wild rambling - good luck with the project