Disclosure: I received complimentary products to facilitate this post. All opinions are my own.
If you're looking for a fully personalized gift, check out Collage.com. I've been very happy with products I've ordered from them - prints, and now photo books in both hardcover and softcover. The process of making the book is smooth and quick - you can have photos automatically spread throughout the books, or edit the layout yourself.
I've included the proof of the cover of the castle book I made for my daughters for their birthday.
I have a chance to give away a 20-page 8x6 softcover photo book. To enter, leave a comment with who you'd create a photo book for! Deadline is December 10th.