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While this isn't AS/400-specific, it may have bearing. Years ago, when we still did a lot of mailings (and were ruining laser printer cartridges by repeatedly running partially-used sheets of laser labels for one-offs), we looked into a dedicated label printer, but (given my very low opinion of direct thermal printing for anything other than very-low-traffic FAX machines) dismissed the idea, opting instead for a cheap 9" carriage pull-tractor (or maybe it's dual-tractor?) dot-matrix line printer. One-up label stock for those things is slightly cheaper than dirt, and if you add alignment marks, it's easy enough to roll the label up enough to peel it off, then roll it back down. -- JHHL
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