Yeah, the best option imho is Epson, particularly the R200 which can be had for £60 from Scan. It prints to cds/dvds and has 6 seperate ink cartridges for each colour and produces brilliant photo prints, if you use some decent photo paper. Haven't had any problems with it or any other previous epson printers.
I get my cartridges from Choice stationerys which works out to just over £2 per cartridge on the smallest pack and down to £1.70 each if you buy 3 complete sets (18 cartidges). Haven't noticed any differences between the epson cartridges to the compatible ones, produces the same results.