Rick
Hi Rick--
The first thing I'd do is go to WalMart and ask the store manager: Who makes your ID tags? or Can I see the machine that makes ID tags, or at a discount club store such as Sams or B.J.'s: where'd you get the photography machine that makes the instant member cards? There's no sense in reinventing the wheel when custom software/hardware exists to do this.
For a manual approach, I wouldn't use PS--too much text is involved (bitmap, fuzzy text at small point sizes) and Photoshop just isn't a good layout program. If I were given this task, I'd use InDesign or PageMaker, try to find a custom paper for ID tags, then print 'em.
Rick, if you have Xara (or are willing to download the time-out demo), I have a kludge for you. I'm posting a sample template (screen capture below). If you like, I'll design you a template to your specs, you drop the photos in, print and trim and poke the lanyard hole using an Xacto blade, then laminate 'em (assuming the volunteer's signature isn't part of the design). Again, and particularly if you have 100s of volunteers, this ain't the least labor-intensive route, but it works. I did a bunch of Christmas present hang tags exactly this way.
My Best,
Gare