For Christmas 2006, I made everyone in my family a simple family cookbook, using recipes I'd collected from them all. I used colorful clip art, not photos, and had them ring-bound at Kinko's. People seemed to really like them.
My co-worker Kim (I know a LOT of Kims) shared this site, Tastebook.com, with me, which offers a fancier and more professional way to produce a family cookbook. Quite a bit more expensive, but cool nonetheless.