0Photography

There are several: www.fotoflexer.com--It's free, you can do layers, collages, animations, decorations, distortions and basic editing. You can also easily upload photos from picasa, myspace, facebook, and flickr. There aren't that many collage options though. www.photovisi.com--lots of FUN templates and collage options, easy to use, only collages. www.shapecollage.com--not as many options, but they have a couple of collages I really like. Has to be downloaded. If you add /online/ to url you can grab photos from online. www.picture2life.com--can pretty much grab photos from ANY online photo sharing (facebook, myspace, etc), over 200 templates.
I know there are more, these are the ones I have personal experience with. Google (or bing or whatever...) "free photo collage maker (or templates, software, generator, website, etc)" and find one you like! Lots of times it will be software with free trials, but those still give you an idea of what you like and you can get some great work saved before the trial expires.
Good luck, and if you find one you really like please share!

I have photo editing software I bought from Office Max for $50 that has numerous layouts for collages. The software is called, Corel Paintshop Photo Pro X3. I love this software, very user friendly.

Also, you might like what picnik has to offer (www.Picnik.com). It's free but you can also pay to get "better" options and it has collage options.

I do my collages on snapfish.com

They are great!
LBC

Walgreens has some collage choices when you upload your digital photos to them for printing.

http://photo.walgreens.com/walgreens/storepage/storePageI...

shutterfly.com. You have to order the prints from them but they are cheap.. also check samsclub.com and costco.com. Those are pretty cheap too.