Do you know someone who scrapbooks? (Is that the right verb?) Would you like to distribute family photos that are a little out of the ordinary? Take a look at Picnik.
To get started, just upload a photo and start playing with it. And if you already have a Flickr account, you can pull photos right from your Flickr sets. Here's a simple collage I made with some photos from a walking tour of Boston.
And here's a fancy collage I made using a photo from a trip to Greece.
I don't know who Daniel and Sophia are, but that's a text field that you can edit, and there are lots more fancy frames for making Mother's and Father's Day cards, holiday cards, vacation postcards, etc. Print them at home on your own color printer, or send them directly from Flickr to Snapfish and have them print cards, calendars, mugs, and more.
If you don't already have a Flickr account, it's like most web-based applications--there's a free version and a premium version. Likewise for Picnik. These were made with the free version of Picnik, but with the premium version you get a lot more choices of layouts for the simple collage, and lots more frames and layout options for the fancy collages.