I recently made a book for Allie using Blurb.com and I totally recommend it to anyone interested in making books. It's so easy and the end product is really professional.
The downloadable software from the website gives you tons of layout options and flexibility. They also have a number of different book sizes as well as cover and paper options. Here are a few spreads from Allie's book...
If you are not super creative, Blurb is still for you! You can easily hire an expert to design your book through BlurbNation or sell your finished book on their website. It's seriously awesome and I can't wait to make another one. My goal is to make Allie at least one book a year so she can easily and visually remember her childhood.