I have used Futureshop before and the pictures came out with really decent quality. If you pick them up you don't have to pay for shipping. The best thing was they said they would be ready within 48 hours.. and the emailed me 5 hours later and said my pics were ready to be picked up.
I have seen digital pics developed at Wal-mart and they were really good as well.. I think a bit better than the ones I got from Futureshop. Same thing with the pickup option, its' free.
I've heard Costco is good too .. but I haven't actually seen any results.
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