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There will be lyrics to the songs in the design. Kinda worried if the text needs to be put in with Illustrator?
No, Type Layers should output as type in pdfs (provided no faux style has been employed) just fine.
I am curious if I can create an 8 page cd insert PRINT READY all in pogotoshop?
That is not a great idea if a bleed is necessary as one can not set the trim and bleed boxes in Photoshop, but one could set them in Acrobat afterwards.
Basically it depends on what your print shop is willing to accept and handle.
You should be fine putting in text in Photoshop. PS doesn't have quite the robust text functionality that some of the other CS programs have, but it probably has all you need. I would set up the doc on one big artboard and use guides to help you determine the width of each panel. Have one doc for the front side and another for the back and you should be good to go for printing. You may be able to google a template for this, I don't have one personally. Look at places who print CD jackets, they often have templates available for download for their customers to use. Hope this helps!
I have the bleed lines setup in photoshop. So your saying I will have to go edit the bleed lines in acrobat after I create the design in .psd ?
Not 100% sure I understand, but you should leave the bleed lines in there during all parts of the process so that while you're designing you know where the lines are and whoever is printing your job will know where to cut.
I will have to go edit the bleed lines in acrobat
I’m talking about the Trim Box and Bleed Box which can be utilized in an automated workflow at the printer’s.
...Kinda worried if the text needs to be put in with Illustrator?...
Why is there a worry about using a program better suited for a task?
...also if anyone has any templates with the dimensions / rulers already set up for that or know of a place where I could find one that would be great! Thanks
You can google for such templates and then find them in the format of a program suited for making a CD booklet. They will likely be in a format used by a page layout program. Photoshop is not a page layout program.
A skilled designer could use Photoshop to make this in a pinch. But a skilled designer will likely be wise enough to choose a more suitable program. Even if you do not have InDesign or QuarkXPress, you can grab the free 30-day trials to do this project.
Am I doing this correctly ? According to the bleed / trim lines...
What are you doing? I just see a template that should be opened in Illustrator where you can place your Photoshop graphics.