Hello,
I don't understand your comment "If labels are not going to work for lower level objects, for example disks... why even present the label button or allow me to associate to a label.". Where do you see this behaviour? Can you insert a screenshot please?
More info about labels is at http://www.solarwinds.com/documentation/vMan/docs/html/en-US/wwhelp/wwhimpl/js/html/wwhelp.htm (search for "Custom Labels").
