I made them using Snapfish. Instead of using photos, I just make my design in Photoshop and upload a jpg. Sometimes it takes some fooling with it to get the image where I want, but it usually turns out great. I have made mugs, books, and notebooks this way.
When I went to wrap the notebooks I realized I was out of wrapping paper so I decided to print some using the same design. Now I always have wrapping paper at my fingertips!