Using iPhoto I have created a book and then printed out the pages myself, but I haven't created an actual, hardcopy book. A client of mine has used that service, though, and seemed pleased with the results.
If you want to create unique photo books for friends and/or family, this is certainly worth checking out.
Tabblo photo books
Previously-mentioned photo-sharing webapp Tabblo has launched a new photo book printing service.
You can upload your photos to Tabblo from your hard drive or through Flickr or Picasa using one of Tabblo's handy plug-ins. Once you've selected your photos, you can arrange and customize your book using Tabblo's simple tool. The 4"x4" Tabblo photo book has 16 pages and costs around $10; it also looks like an amazing gift idea for the holiday season. The book printing service is in beta, so it's not perfect yet. For example, they claim to offer a 9.5"x8" book, but every time I tried to create one, it went back to 4"x4". Your mileage may vary.
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