Bottom line is all the 'SOHO' printers are utter crap. There are just varying degrees of crapulence. I deal with heaps of these printers in my daily life and here's my feedback on two I'd recommend:
Epson - Their printers are amongst the best in my opinion. The nicer printers ($150-$250) use 6 colours to produce photos (R210 and R310). The only downside I see with them is that they chip the ink cartridges to prevent you from refilling them rather than replacing them.
HP - The major gripe with HP is their print heads are integrated into the ink cartridge, so refilling is expensive. You can however, use third party refill kits to counter this.
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