i oso do my background in photoshop and the text in illustrator, print out good, so no problem to me, u can embed the photoshop image into illus as well, but it'll increase the filesize but u will onli need the illus file for print

or u can use indesign or quark express to do the text, and insert the photoshop

just make sure everything is in 300dpi or if u printing large banner or posted u can go less, but better check with printer how much percent u can go down