I am starting a small, home-based business to print invitations and
announcements.  I am looking for a recommendation for a colour printer
that best meets my needs.

What I'm looking for:  high quality printing;  ability to readily
handle card stock without jamming or bending;  ability to handle
different-sized items (i.e. not just 8 1/2 by 11); ability to scan
photos/images; reasonable maintenance costs for replacement
cartridges, etc. (since I understand that the replacement costs of
colour cartidges can be prohibitive); available in the Toronto area;
preferably under $300 (Canadian).

In the answer, could you please cover, in basic terms:  difference
between ink jet and laser jet colour printers and which is best for
me; what is "dpi" and how much do I need; is it better to get the type
where you can replace only the specific colour that runs out versus
the type where you replace an entire cartridge that contains all the
colours?

Please also feel free to comment on any other factors that you feel
would be important.