Photoshop (Photoshop Elements will do, though I use Photoshop CS3)
Internet Access
A Shutterfly account
Step1
Pick your photos. They should be high-resolution photos - around 300 dpi works best. Edit your photos in Photoshop Elements using your own creative personality.
Step2
Go to www.shutterfly.com and open an account. Once you have your account, click on "photo books" and pick out the photo book you like.
Step3
Upload your JPEGs to the Shutterfly memory book section, adding backgrounds and wording as you go along. (Or you can create your own in Photoshop and download them to the Photoshop template that Shutterfly provides.
Step4
Save it and order it!
Tips & Warnings
Remember to use high resolution photos
Browse through photo books/memory books on the Shutterfly site for inspiration
Read the PDF provided on the Shutterfly memory book site for techinical specifications to ensure none of your pages are cropped too closely or cut off.