I recommend Illustrator or QuarkXpress.
A lot of people might tell you to use photoshop, but the problem I have with photoshop is the edges dont' print out crisp ../they kind of have a fuzzy edge to them, which won't happen with Illustrator, etc.
scan and save your image at medium high-res (300 dpi or so) and save it as a bitmap or Tiff file....clean it up in Photoshop if you have to.
In Illustrator, "place" or copy and paste the
image from Photoshop. Add the text from there.
personally, I'd do the lettering by hand, esp. if it's hand-done artwork, but that's just a personal style/preference.
good luck!
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