There are plenty of people making DVD discs with new songs on them. I have two and as soon as I get most of the songs replaced I'll be pulling them from my selection. For home use they're ok, but they take far too long to cue for a show (doesn't sound like you'd have this problem though).
Ok, basically CD+G is an audio disc with a seperate track (sub-code) for the graphics. It requires a special player to read the sub-code information- however, there are some DVD players that can read the graphics and they will be marked as such (look on the side where it says DVD/VCD/MP3//CD etc and it will say CD+G). Keep in mind that these DVD players are not real common in most retail stores in the US, but they are out there. Remember, CD+G and MP+G don't usually have any videos.
MP3+G is a format that's used largely on computers for playback, however, a company called CAVS has two different players that use a variation of MP3+G. Of these two players, the CAVS-99 stores the CD+G information locally on a hard drive and you can playback any song from the hard drive or from CD+G's. The CAVS-202 plays a format called SCD+G which is basically a DVD disc that has a large number of songs in a derivative of the MP3+G format (it's propriatary to CAVS). The CAVS-202G will play both CD+G, DVD, and other formats as well.
There are a number of opinions on equipment regarding quality and feature set. For your use I'd probably consider the CAV-202 (does DVD/VCD as well) or the single player JVC 202 (does NOT do DVD, but should play VCD) for your use. The player varies in price from about $200-$350 online.
While there are a couple vendors that have a reputation for making higher quality CD+G discs (Sound Choice, Music Maestro, Priddis, perhaps others) for home use the Karaoke Bay and Party Tyme discs you find at most major outlets would be inexpensive and acceptable for use at home.
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