Mike, I highly recommend getting into letterpress as a solution for packaging. A Hypnos album packaged letterpress would be a great thing. It also can be fairly cheap to produce if you have access to a studio via classes. Fine paper tends to be the most expensive thing, but oh is it worth it. I would also recommend paying a visit to the great people at Stumptown printers. They'd probably give you a mini tour of their operations. Those guys are great.
And let me know if you have any letterpress questions, I'd be more than happy to share what I've learned so far. And I'm also curious to know the name of the school you mentioned.
The place I'm talking about isn't exactly a school, but they have classes. Also my understanding is that once you've taken the classes, you can use equipment (not just letterpress but all kinds of stuff) for small fees.http://www.iprc.org/
It's something I'd like to try soon, at least for a one-off special, limited release, and see how it goes. I've always been interested in book arts, zines, chapbooks and so on, and I can see all kinds of possibilities with a merging-together of letterpress, screenprint, offset, and even laser-printed elements.
It seems to me a great way to create a unique piece of art to accompany each CD, and more people might consider the CD worth getting (as compared to a download) if it came in something nicer than a jewel case with a standard booklet. In the interim we're doing digipaks, but I'll have to investigate these other options.
I've communicated a little with Stumptown, and received their catalog. Apparently they do great work, but their prices for printing services are pretty high. My understanding is that they're very much in demand, and not at all hurting for jobs.