I have the Epson R-300 ($109 at Costco) and I love it. The CDs look very good. I also like that it uses separate ink cartridges for each of the 6 colors. So if you are going through lots of red, you won't be throwing away lots of other ink when the red runs out.
I can't comment on what happens as far as smudging when wet since I haven't used it that long.
But I always found Epson ink jet printers to have by far the best quality.