i have heard alot of people doing this and am surely late on the bandwagon but about a month ago i was at my sister in laws house and she was working on making her blog into a book, she showed me the program and roughly how it worked and i got on the ball.
i had been putting it off mostly because i thought it was going to be a pain, and while it was time consuming i really enjoyed doing it.
i used blurb.com, their software is really user friendly and allows for quite a few changes so you can really make it your own. as you can see mine is really plain but i love how it turned out...
let me know if you are doing one or thinking of doing one and have any questions, i'd be happy to answer!
*oh and this is just 2007 i am working on 2006, it is much longer!