I just bought a HP D5160 on sale at OfficeMax for $69.99.
I read great reviews on the printer and it is living up to them.
It has a photo paper tray, regular paper tray and CD/DVD tray.
I printed pics on the sample HP 5x7 paper and was blown away with the quality.
I bought it to print directly to DVDs of my in-laws old home movies I transferred to DVD.
It worked great.
The print cartidges are reasonably priced but I'm going to get a refill kit.
But the printing software that comes with it is problematic.
I ended up using Acoustica CD Label Maker because it supports this printer,
is easy to use and full featured.
So now I have three printers, a color laser, a multifunction inkjet and the D5160 for discs.