I've got an Epson Stylus Photo R320. It works well, but about 50% of the time when I try to print out a high-res picture (like a DVD cover), it memory dumps. Also, the CD printing software won't print all the way to the center of the disc. The smallest inner diameter is 20 mm. This is a problem if you're using labels. If you're using printable discs like MoveAlong, it shouldn't be a problem because you can't print all the way to the center.

And, yes, injet printers look much better on glossy paper than regular printer paper. It does on my R320 anyway.

(For DVD covers, I use my color laser printer at work on regular paper. It looks just fine.)