I used Blurb for my photography class. It's pretty good with a wide selection of templates for each page, but you can't design your own grid unless you use a program that can output to PDF. Keep that in mind. Also, a few of my classmates experienced darker images than they expected, but that might have been a calibration issue. Another thing to consider is that there is not customer service to telephone. It's all automated from the moment you purchase your book. A computer sends the information to a printer that just hammers it out. You can email for help or questions, but when I did, I never received a response. However, my book came out good, save a few pages that were darker than I anticipated, but I also opted for the higher quality cotton paper.
Other places to look into are:
My girlfriend used Photoworks.. a bit more pricey but she was happy with it. I don't know what options they have for paper or arrangements, however.
And I just googled Snapfish.
D80 · Nikkor 50mm f/1.8 AF
Sigma Foveon sensor fan... future owner, promise!flickr