I think Shutterfly provides the best quality product of all the on-line photo sites for creating books, cards and other gifts.
Software,Software
Blurb
SoftwareI think that Blurb is a fabulous, versatile program that it good for both the novice who wants to use simple templates and the pro who wants to design their books totally free-form. It is free and you can use it on Macs or PCs.
Aperture
SoftwareOnce you have a very large library of photos, you should probably invest $80 in Aperture. It has professional level photo editing capabilities and unlimited options when it comes to making books, but more importantly has an incredible library management system.