I use Shutterfly for distributing my digital photos to family and friends. They also have very reasonably priced photo books. I made one for our parents for Christmas. I made a second called "People Who Love You" for my daughter – I included photos of each relative, with a caption, and created a personalized bedtime story. "Aunt Megan loves you! She likes to read books to you, and to teach you things. Grandpa Jim loves you! You are his first granddaughter, and he thinks you're awfully sweet and awfully special…" etc. This worked well for our very large, distant family. As she gets older, we'll add "stories" about special events – birthdays, outings, etc. They're very reasonably priced, and they came out beautifully. I think they'll be a treasure when she gets older. I'm not crafty enough for scrapbooking, so this is a nice compromise for my daughter.