Unfortunately, they have had some problems with their system compatibility with blogger.....NOT TO WORRY! You can either paste your pictures and words page by page (very time consuming) or you can wait patiently until they fix it and then you can do what is called a slurp which takes your whole blog and slurps it into that program, making it easier and more convenient to make your books. The older versions will still work for those who downloaded it before september.
I have also made a book through www.mypublisher.com which is a good site. It is through Costco. On that site you do have to start from scratch soooo, if you are making something for a gift or a brag book or something this site will be a great one. Blurb is less expensive for some types of books and has more options (for the hard bound and larger sized books) Cosco is less for the smaller, paperback books and gets them to you super fast.
Whatever you choose, your product will turn out great! Explore for yourself and see what you like. I will keep everyone updated on when the problem is fixed with blurp because I am VERY anxious to get going on my blog to book for 2008. Hopefully this was helpful to someone with the same questions I am having.
Have fun and BE CREATIVE. It may change the way you blog if you know it will eventually be in a book.