Sure it can be done in Publisher, much easier than other applications.
What version Publisher? What product number is the labels?
Help here for 2003, but it is about the same in 2007
http://office.microsoft.com/en-us/publisher/CH062524651033.aspx

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Mary Sauer MSFT MVP
http://office.microsoft.com/
http://msauer.mvps.org/
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>I need to know if anyone has had experience designing and printing their own
> product labels? Can it be done in publisher?