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-That depends on the kind of paper, but color lasers give consistently better quality, in my opinion. Just make sure you have your color settings correct - what's on your monitor isn't gonna be what's on the paper.
-They use the same paper as the insert or booklet cover. Not usually as glossy as photo paper, but heavier than regular matte letter paper. It's bordering on oaktag thickness.
There's also usually perforation on either side of the spine part of the obi, but you can probably ignore that.
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