A friend of mine has recently sung the praises of Shutterfly, and it you haven't checked it out, Now is the time!
You can create a book of your photos..the site allows you to choose backgrounds, layouts, fonts, and book covers. I can't imagine a better gift for Grandma...a quick family history, or just a book showing all of the fun that the grandkids had this year. I recently got one for my Dad, detailing and cataloging our trip to Alaska. I even took pictures of our ticket stubs for the back cover. And, for a limited time only, the books are 30% off with free shipping! check it out at www.shutterfly.com