I've been using HP Premium Plus Photo Paper. Had good luck with it so far, plus I got a new HP printer yesterday...Photosmart 7350. One thing you might want to make sure of on that Kodak is how long the ink lasts on the photos...the HP I got is good for 65 years. It's an awesome printer, prints really nice pictures (4800dpi with photo cartridge) and is 17 ppm in text. It also has 4 memory slots for direct printing and it even lets you download the pictures onto the PC through the memory slot, it's very convenient!
The other thing to consider is the type of paper that resists water. I haven't seen it in retail stores but I know you can get it at computer shows and probably online somewhere. Photos on regular photo paper will smear if you get it wet so just be careful with it.