CIB,
Making photos from a digital file created by scanning a chrome, print or neg is still the best way to go. Digital still looks digital unless you have a photolab that has invested the bucks in a good printer like the Pioneer. If you decide to go the scanner route, a USB connection is useful and the HP Photosmart S20 Xi is a good low end unit. It scans prints up to 5x7, along with 35mm negs and chromes. If you already shoot 35mm, you can just get the film processed and then do the rest in your digital darkroom (scanner) with a program like Photoshop.
Take a look at an Epson Stylus Photo printer, not Stylus Color. The Epson photo printers will produce an inkjet photo that is as good if not better than a chemical print as long as you start with a good scan. Use good glossy paper for details.