My 1st wife has a Canon A80; I have a Canon A95 (now $254). They both take amazing pics. We use a Canon ip3000 inkjet (now $45) for prints. The results are as good or better than 35mm.
Look here for A95:
http://www.dealtime.com/xPO-Canon_PowerShot_A95~KW-canon_a_95~Z-52730~ShipId-G~CT-4~SRID-77ae2cea137f66fb590c0457~prdOvr-1~AT-DD
Look here for ip3000:
http://www.newegg.com/Product/ProductList.asp?Submit=Go&DEPA=0&type=&description=canon+ip3000+printer&Category=0&minPrice=&maxPrice=&Go.x=0&Go.y=0