We have a children's story nearly finished, dialogue and song. It needs to be able to be played with no gaps in the audio, but still with the option of choosing sections and songs... 
 
I don't mind buying but budget friendly is best.

No need to spend more money on something like CD Architect. Load each chapter into a new SONAR project as clips on a single track. Use slip-edits to trim them, volume automation to level-match them, and crossfades to seamlessly merge them. Export the whole thing to one big 16-bit wave file. Then use any general-purpose CD-burning software (e.g. Roxio, Nero) to insert indexes for each chapter or jump-to point.

Cool, I guess I wasn't sure if indexes worked for that. I'll give it a shot. Thanks Bit!