My wife has been creating photobooks for some time now and has used Blurb, Shutterfly and Adorama.
Here are the results that we have found on each:

Blurb Good prices and average photo quality but paper choices do make a difference in photo quality.
Shutterfly Good templets
Adorama Great photo quality on thick photo paper as pages. Turn around time from submission to delivery is 4 days from out last production experience.