My preference is HP followed by Epson. I have an Epson R300 and bought it because it has a tray to print CD/DVD labels. Occassionally it has a problem requiring the cleaning of the print heads. It can be tempermental. Output quality is terrific.

On my Christmas list is the HP8750 ($500) which will do 13x19 paper - allowing for 12x12. I had a HP1120C (never had any serious problems with it - only real problem was/is west TX dust) that I bought many years ago and used it on my Win95 system. Two weeks ago it gave up the ghost. The Win95 system gave up the ghost as well. I've had it since it first came out and paid $500. I also have an HP 7450 that I use for some minor work.

I think the world of HP printers. My Epson gives me great results too but can be tempermental.

Printing 8x8: My guess is to print on 8.5x11 and trim the excess. My recommendation is to invest in a good rotary trimmer. Expensive but if you do a lot of work requiring trimming the rotary is the way to go.

Paper and ink: I only use the manufactures brand. Why take a chance on getting something that is not up to standard or that will damage the printer. I'd rather play it safe. I use only one brand of paper - KODAK ULTIMA (8.5x11). I found that the first print in my Epson and HP just came out perfect. And supposedly 100 year archiveability with the normal inks with the printer. I have not noticed any fading or color shifting under normal storage and viewing conditions.

If Santa Claus brings me the HP 8750 I'll spend $30 and get some of the Office Max 13x19 paper. But more than likely I'll get Kodak or one of the other pro papers that I found on www.adorama.com.

and I'm on the other end of the sprectrum.. I really dislike HP and wholly support Canon printers. The 8750 has been getting some bad press in the pro market due to some problems with paper feeds, paper bronzing and ink usage. The pigments inks have been found to not work well with many 3rd party papers like the wonderful Red River papers (the company has even posted on their blog not to buy it!).. not good in my opinion and has a lot of pros up in arms..

Anyway.. I wanted a pigment ink printer and am glad I waitied it out given HP's dismal launch. The Canon pigment is out next year and may have some issues as well.. but time will tell.

In the meantime.. it is still way more economical to use a 3rd party printer for occasional printing. I print more than 100 5x7 and 30 8x10 's a month for clients... I use whcc.com and have saved a ton of money... their print prices are almost less than what it would cost me with ink and paper alone not to mention the $500 it would cost for a new printer. I can proof on my older canon if need be and with 2 day shipping.. waiting is not an issue. Just an option to consider..

What a great Christmas gift!
I have an epson stylus RX500 and love it. It is a scanner and photo printer. I have printed more than 1000 8.5 x 11 pages as well as numerous pictures and the everyday printing we do. I have not had a problem in the 3 years that I have had it--no paper jams, no ink bleeding or streaks. I have not had to clean the heads and love the borderless option for printing my pages. I love Epson and will buy another when this one is done. I have had hp and canon but my preference is Epson. I like the 6 ink cartridges, so that I can replace only the ink color that is actually out. I use only Epson ink and use the "jet" paper from Walmart in soft gloss. I don't like the high gloss.
The best recommendation is to use a photo printer and go with the brand you are comfortable with. Check the ink cartridge prices, too as that weighed in my decision to get this epson.

I have purchased a Epson Stylus 1280 a wide format printer. It was a bit pricey but I just love it. I also had Canon products up till now and my Canon i890 I believe it was. My daughter now has it. It prints gorgeous photos and is speedy. I must say I never had a bit of trouble with it or any of my Canon printers. I usually print out my digital layouts in 8x8 and do paper 12 x 12 and enjoy the fact that I can use my printer for titles etc. I probably won`t print out 12 x 12 digital as it would be too costly. Just my opinon. So nice of you to be buying your wife a printer.

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Yes.. 12x12 is costly to print at home... I mean - if you have the money to spend on the pricey paper and wide format.. go ahead. But if the scrapping is just a hobby and you are on a small budget.. I'd just send them out for final printing and buy a small dedicated photo printer that will do a great job. If you can find a Canon i960 for under $150.. I'd jump at it. To this day I still use it for all my small project printing and non-archival client photo needs (ie; notecards, calendards, etc). For all other client and personal needs, I use the pro printers.. professional papers, pro archival inks and speedy service can't be beat. I think it's all a matter of $$$... if I had a ton of it, I'd by the best printer out there and print away.. to me, its just not cost effective. But yes.. it is a nice gift and no matter what you decide she will be impressed... of course.. you are still going through with this right?