We just finished a book publishing project (grades 2-4) using Tikatok. It is pretty intuative to use, you type the text, you scan in the illustrations. The books can be viewed online and the best part is you (or parents) can buy hardback or paperback books from the site. The quaility of the finished book (we've seen both hardback and paperback) is amazing. The books are expensive when you buy them off the site but you can get educational pricing ($7.00 and $12.00). The gal that owns the site is very helpful and will get right back to you if you have questions.
As I teacher almost all my student projects are digital but as a parent I always loved those "hard copy" projects.