Most new printers should work on Win 98SE, hedgegog, they should come with a driver disk, which will include Win98se drivers, or you can download drivers from the manufacturer's website. Hewlett-Packard make good Photo Printers but the cartridges can be a little Expensive. Epson also do good Photo Printers and the cartriges are usually the cheapest around. Lexmark Printers can be very expensive to run but also give good results.
Nowadays, I find that home photo printing is not a good economic option as you can copy your pictures on to a pen drive, CD or memory card, take them down to your local Boots chemist/store and have them printed very cheaply. The quality is good and you don't need to buy the photo paper either.