We sell mostly Canon printers these days Cees as they do a good job and are cheaper to run than others. Even so, it is actually cheaper to put your photos on CD and take them to print at a photo shop. Many of these places have a DIY section for this starting around 60c per print. Proper photo paper for inkjets is around $2 per sheet then you have the ink prices on top of that.
We sell a lot of the Canon Pixma ip4000. It has 3 separate colours, a large black and a small black for photographic use. They do have more expensive models. We like it though as Canon running costs are generally lower than Epson and the printer is relatively quiet. We have not had a Canon go bung on us yet - very reliable. We sell them for around $320.00 but I am sure we can do a deal for you. Will send you an email about it
Although I have a laser, I used to print photos on the inkjet (we have an HP 970cxi but HPs are too expensive to buy consumables for these days) as the colour matching was better. Since getting the Kyocera laser the colour matching is much improved though. You are right though, a colour laser is not within your stated budget.