If you have a bunch of baby books, albums, craft projects, etc. that can benefit from a beautiful picture of your child, this is a great little item to have:

The Epson PictureMate: http://www.epson.com/cgi-bin/Store/consumer/consDetail.jsp?BV_UseBVCookie=yes&oid=53540922

It looks like with a rebate, this printer only costs about $70 (May 17, 07)

It may have some limitations (only prints up to 4×6), but I usually only need the smaller photos for my frames and other quick projects.  I love being able to print out a quick wallet size photo to send to work with my husband!  It also makes these cute little greeting cards.  They are the 4×6 photos that you fold in half and instantly have a great little card to include with homemade cookies or any gift. 

For large printing projects, I would still recommend going to Walgreens or the like or using Ofoto, etc.  However, for the price and convenience, it is a great way to have access to your prints right away.