I use a Cannon ink jet. I do not know the model number off the top of my head and I'm not at home to look at it, but I'm extremely happy with this printer. You should have no problem getting a good ink jet printer for between $100 and $200. The ink is expensive. However you can save a lot of money by buying the XL ink cartridges. The XL carts cost about 50% more, but tend to last about 3 times as long. From my experience, buying off brand ink never works out well.
Also remember, that the quality of the paper is JUST AS IMPORTANT, if not more important than the quality of the printer. The best printer in the world make crappy looking covers if you use cheap copy paper.
***Edit**** It's a Cannon MG5420. I found another post where I was talking about it. It looks like it should run you about $100. It will come with ink, but not the XL cartridges. These won't last long, but you can replace them with the XL carts.