For those of you who missed the pre-christmas deals on the Epson SX200 all-in-one, it can still be had for £39.99 at Tesco Direct. It is also available for collect in store to avoid postal charges, but you must order it on-line. The instore price is £79.99.
The printer is now selling at around £80 at all the usual places (pcw, Comet, Argos, etc).
Yes, there are compatible cartridges available.