I recently made three photo books using different services for each one. I used Blurb, Shutterfly, and Apple. Each of them have pros and cons, although I guess I would say that for the price, Shutterfly produces a great product with high quality photo paper and bound well. Below are my notes for each product.
Blurb (MV '09 - hardcover w/ dust jacket) - high quality photo paper, well-produced picture quality, easy to use formatting program, easy to share book, nicely bound, comes with dust jacket OR picture wrapped cover option, most expensive.
Shutterfly (One Week in America - hardcover w/ picture wrap) - high quality photo paper, well produced picture quality, most difficult formatting program, nicely bound, picture wrapped cover (no dust jacket option), least expensive.
Apple (Daisy - softcover) - high quality photo paper, well produced picture quality, easy to use formatting program, softcover binding is flimsy, second most expensive.