We did a CD almost three years ago (how could it be that long ago???), and we went with the short-run replication (burning) rather than duplication. $3/CD for 100 CDs rather than $1.70/CD for 1000 CDs. Looking at it one way, we only spent $300 up front rather than $1,700. However, we reordered once, so we're up to $600 for 200 CDs.
We've been out of CDs for a year or so, and I don't feel like sending another $300. The CD wasn't THAT good!
As for quality, they looked and played just as good as any CD in the store.
I guess it depends on how dedicated you are to selling them. We just sold them at gigs, and sold a few from our website, but we never made a big point of pushing them. If I had ordered a thousand, I'd still have plenty left!
Cheers, Tim