and I use a Canon BJC-55. It's said to be the world's smallest colour printer, and I can certainly fit it into my laptop flight case along with the laptop itself and sundry bits and pieces. It's a superb printer, has an IR port, and produces stunning results for something so small. The only downside is the price - around £250:00 (VAT inc.)
An alternative is the Canon i70 at £175 ( VAT inc.) but try to make the budget stretch to the BJC-55 if you can - you'll not be disappointed.