I was in the same boat as you last year. My IP1000 died. Actually I was responsible for its death.
I was so happy with its low running cost that I bought another Canon. However I realized later that the new Canons all use the PG40 and CL41 cartridges which are not economical since they have the head built it.
I then decided to sell off the new Canon and go for a AIO. After a lot of research I narrowed my choice to the Brother DP165C and any HP using HP21 and HP22 cartridges.
The Brother comes in at Rs 4000/- and has the advantage like the IP1000 that its ink cartridges are just passive tanks without any electronics. The HP21 and HP22 cartridges have a reputation among refillers of being capable of safe multiple refilling. The HP AIOs with these cartridges are F2235, F4185 and F2120. All these AIOs are not sold by HP in India. The first two are normally given as freebies with Compaq systems and some dealers will sell them to you because the Compaq customer may have not wanted it.
I bought the 3rd one because it was black and I wanted black. I got it from an ebay dealer for Rs 3490/- with 1 year warranty. I got a further discount of Rs 500/- using a coupon.
If you want just a printer with those cartridges, go for D1560. You should get it for under Rs 1600/-.
If you are willing to shell out more money and do not want to refill cartridges, go for the HP F735, which is a AIO or the D730, which is just a printer. The former should cost you around Rs 7000/- and the running cost is low. Good capacity cartridges that are economically priced.
