Thanks folks for the replies.
Good tip DMT - you mean charge just for turning up and then they pay for what they order on top of that. Like you say, for friends you can throw one or two in for the fee. Like it.
Xavier - kit at the moment is 450D, kit lens, 50mm f2.8 macro, couple of tele-zooms, 430 EXII, off-camera cord, freebie wireless trigger, lastolite 5in1 reflector kit. I can print up to A4 on my printer, but think i would stick to getting them printed out professionally by a printing place (at the moment I use Costco - pretty cheap and have not had a problem yet).
I was pondering getting a cheap lighting kit - Interfit do 3 EX150 lamps with a background for just less than £350 (- any experience of these, anyone?

).
Hadn't thought of a soft focus filter though - was relying on doing anything like that in PS.
Jinkster - thanks for the comprehensive reply - very useful. Some good ideas there for cheap

but effective backgrounds, thanks Paul.
Cheers, Sie