Oh, yes, your soaps are quite a bit smaller than what I'm doing. And for guest soaps, that makes sense.
The shrink bags could be downsized to fit your soaps, but your vacuum packager might not get hot enough to melt the shrink bags, if yours is similar to my vac packer. To seal my soap shrink bags, I'm using an industrial bag sealer instead. I can adjust the heat settings on that one. It probably gets quite a bit hotter than vac packer. I would leave the ends open like what is shown in this video: [ame]http://www.youtube.com/watch?v=hQrUx5P3Fxs[/ame] She does a lovely job of explaining how she does her packaging.
My goodness, those are high-end digs. I know muslin is an option, but have you considered organza? It might not be quite as protective as muslin, but it is more decorative and may look a little more classy, if you can afford paying a little more for packaging. Here are some products that might pique your interest:
http://www.papermart.com/sheer-organza-fabric-bags/id=18971-INDEX