I've made several photo memory quilts. I've had the best luck with Printed Treasures--no running & very little fading when the quilt is washed. The sharper your photos the better your end product will be. Sorry I can't help with brand of printer, but that would affect the final result also. Follow the directions in the package exactly and you should be happy with the final results.
BTW I like the quilt pattern you've chosen. It will showcase the photos nicely.
Please post pictures when you're done.