We have done a few from various vendors, by far, we enjoy ShutterFly's photo books as they give us the most options for backgrounds and image layouts. You choose backgrounds, captions and how many and in what layout you want your images. Then you place your images in the book on the screen and can position and zoom in / out the picture to a perfect fit.
It's pretty amazing as a web application. The books take a while to put together, but the results are nice. I just wish the pages were thicker.