I can highly recommend the Lexmark X5150. It is a multi-function (printer, scanner, copier) unit that produces fantastic results and isn't too expensive. As with most printers, paper quality makes a big difference and I can say from experience that, on photo paper, it's almost impossible to tell the prints from this printer apart from lab-produced photos.
I also have a Tektronix Phaser 850 thermal wax printer that prints absolute photo quality on any paper (even cheap copy paper) but the printer (and the wax colorstick "ink") is expensive.