A vote for Lexmark here. I needed a new printer with a multi type memory card reader to replace my old Photosmart 1000. I also needed a new fax machine and my old scanner has never worked with XP due to driver issues.
Walking round Sainsbury's (not something I often choose to do), I noticed a pile of Lexmark X5650s at less than half price - £49.99.
I went home and checked out the prices elesewhere. PC World said £107. I went back and got one. The checkout price was actually less than the half price sticker, due to the VAT reduction.
As a combined printer/scanner/fax it's replaced all the above items in one go and freed up the hall table because the old phone/fax has gone to the skip. The ink cartridges aren't cheap, but less than the old HP rip-off prices. The print quality is quite good enough for my stuff, including photos (it has a common paper loading slot which works fine with 6 x 4 photo paper and copes with other sizes which I'll probably never use). It's also reasonably quick. The software for XP is excellent, very user friendly, and includes photo enhancing/cropping, text conversion, etc. Installation was straightforward and it all worked first time out.