I enjoy making photo books. I've used iPhoto templates and blurb.com templates. I've also used lulu.com to make family calendars. Lulu was less expensive, and they offer more variety in sizes and types of books, but you must create the book online instead of downloading free software as blurb offers. For iPhoto, everything's already on the computer (as part of the iPhoto/iLife program) and you can print pages (or calendars) on your own printer if you choose to. Lulu and blurb don't allow this. The proof PDF for blurb has a watermark on each page.
I linked to this page from one of the Peachpit Press writers because I wanted to look at the examples in more detail before starting the next book project: stories about my daughter.
Also blurb has a photo book contest that I'm interested in trying:
http://pbn.blurb.com/.