Adobe Photoshop is world
class graphic design software for photo/image processing,
but it's not the best design tool for typesetting and
line-art graphics that are destined for commercial
printing... especially silkscreen printing spot-colours.
We always recommend that
clients process their photos/images in Photoshop and then
place them into Adobe Illustrator or Adobe Indesign for
assembly with design templates, line art graphics and text.
Why is that? The image shown below displays the problem:

The letter "A" on the
left is line-art text from Illustrator... and the letter "A"
on the right is from Photoshop. They were both created using
the same font and point size, and the image was saved at
300dpi which is the most common resolution for commercial
print in the CD manufacturing and DVD manufacturing world.
As you can see, the
Photoshop generated letter is noticeably fuzzy... and this
is because it is a bitmap image as opposed to line-art. Such
fuzziness isn't as big a problem for the large bold text in
your design, but it can become problematic in smaller text
and finer styles of fonts.
The fuzziness of text and
graphics created in Photoshop can play havoc with the visual
quality of silkscreen printed designs. What appears to be
sharp and smooth on your computer screen turns into jagged
and rough edges in the final print. On the other hand,
line-art does provide sharp edges and smooth curves or
silkscreen printing spot colours as well as all types of
CMYK print.
Due to this (as noted
above) we always recommend that you perfect your photos in
Photoshop, save them in high-resolution form (such as a
300dpi .TIF) and then place them into your Illustrator or
Indesign design page where you can add your line art
graphics and do your typesetting.
The result will be
sharper and cleaner text and graphics, which equates to
higher overall visual quality and legibility.