Homebrew PCBs

I have the exact same printer, just bought it a few weeks ago
explicitly for the purposes of toner transfer (and it was dirt cheap).
 My first attempt failed, but it had nothing to do with the printer. 
All the instructions floating around say to stick the hot board into a
cold or warm water bath immediately.  I found that when I do this, the
paper bubbles and pulls the toner off of the board while it's still
soft.  On my second and subsequent attempts, I allowed the board to
cool for a couple of minutes before putting it in the water and it
worked perfectly.  Every board I've made since the first has come out
great.  I have tried several photo papers, and while I'm confident
that the staples brand should work (based on other peoples
experiences), I've been using Canon Photo Paper Pro.  It's one of the
most expensive photo papers around, I use it for high quality photo
prints, but it works great for toner transfer too.  The 4x6 sheets run
about 40-50 cents a piece though.  I tried Kodak paper, but the toner
doesn't stick well to it, you get ghosting from the fuser roller.

Tips:

Acetone works great for removing toner from Copper (handy after etching).
A stiff bristle scrub brush works great for removing paper residue
from boards during the "soaking phase."  A toothbrush gets in-between
traces well.
Always run the tip of the iron along your traces at some point during
the ironing.

Good luck!