I recently bought a Canon EOS 300D camera, and for producing regular sized prints I also got one of the Canon CP-200 printers.
This is a small printer designed for producing regular size (6x4) glossy prints. It works on the Dye Sublimation method. A film cartridge the width of the paper goes in the side. The film has Cyan, Magenta and Yellow sections, and the paper which you put in a tray and clip to the front of the printer is rolled out the back of the printer and back out to the front four times. The first three times it lays down the Cyan, Magenta and Yellow sections, and on the fourth and final pass it lays down a clear glossy layer as a protective coating.
You then just take the print out, snap off the tabs at the end which held it in the printer at the extremes of travel, and you've got a 6x4 glossy print which looks exactly like a print you'd get from Boots or somewhere. The quality is absolutely stunning and knocks the socks of anything you'd get with an ink-jet. Dye-sub prints are supposed to be much more hard-wearing.
The paper and film cartridges are sold together, and with the printer you get enough to do two sets of 36 exposures, as well as a test pack that will do five prints just so you can check it out right off...
It can connect directly to your camera and can print directly from there, and will also attach to a PC or Mac to print from your computer.
The CP-300 is a bit more expensive, but the only differences are that it comes with extra trays to take smaller paper for credit-card sized prints and stickers, and has a battery pack so can be used anywhre.
Ok. For big pictures to hang on your wall this is no good, but for regular sized prints you can stick in the album, or take down the pub and show your friends, or send off to your family, this is a great option, in my opinion.