HP Photosmart 335 photo printer - only $40 (!!!) @ Harris Technology + 4.5% moneyback
Stylish and portable, the printer weighs less than three pounds and is easy to grab and carry with one hand. Take it to parties or on vacation to print almost anywhere. Print up to 75 photos per charge with an optional battery. Print directly from memory cards, PictBridge-enabled cameras and camera phones, using an optional HP Bluetooth® Wireless Printer Adapter. See photos and select what to print on a 1.5-inch color image display.
Not to mention that you also get 4.5% moneyback from MoneyBackCo — not much at $1.63 but still a saving :)
(Note — as we currently have some technical issues querying MBC on details, the MBC box might not be showing the moneyback amount here — we are working on the solutions).
According to its DataSheet, it uses Ink Cartridge No 95, 97 and 100. You can find them in Au for $30-$40 each (e.g. http://www.gemoffice.com.au/hp.htm).
shitz..i got too excited and ordered 2 of it..
Totally forgot about Snapfish as an alternative.. >.

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You also get flybuys points.