Why do you want a fax machine? Just get an online fax program that lets you receive faxes as email, and you can upload PDF, Word, etc. to send.
As far as color printers go, I think there's no reason not do color laser these days. I like the Brother line:
http://www.brother-usa.com/Printer/Color_Laser_Printers/
Street price for the lowest end, ~$200.
/jordan