Hi J.,
I've created an annual family photobook since my son was born as well as lots of other fun albums for family events, the kids, etc.
I've used MyPublisher and I love them. They are a little bit more expensive than Shutterfly, but if you sign up, they are always sending out great promos by email. The quality is outstanding.
I've also used Shutterfly, but I must say that I've found frustration with Shutterfly getting the colors right in the photos at times. One book I did seemed to print many of the photos too dark (and I do all of my own editing prior to uploading, so I know the pics looked good.) That said, I had a great coupon, so I tried them again for my an album of my sister's wedding photos. I must say, the coloring in that album was perfect... The other issue I've had with Shutterfly is the photo upload process. Since it's done online, sometimes I'll be in the middle of an upload and the internet will fail or the website will crash on me. With MyPublisher, you download free software to your computer and you can work "offline", so no issues of crashing. Once the book is created, you upload it to their site. The benefits of Shutterfly over MyPub that I can note are the creation options - more page options, etc. I haven't used MyPub in a while, so maybe they've improved their page options.
This year, because I purchased a great deal through Groupon, I'm trying a different company called Picaboo. I'm currently in the process of making my 2010 album (I got behind!) and I can say this - with Picaboo, like MyPublisher, I downloaded software to my desktop so that I can work offline. I love this feature. I have found the process slower than either Shutterfly or MyPub (it's going to take forever, but I'm using over 600 photos) however, the options for page creation are incredible! I hope the quality is good. I did a quick online review search before purchasing the Groupons and Picaboo had wonderful reviews.
Happy photo-booking! :)
Update: I just finished my Picaboo book and granted, it was 160 pages, but even with the Groupons, it was EXPENSIVE. I do hope I get blown away by the quality because based on price and ease-of-use with their software, I'd go elsewhere.