I've come across a website that gives artists a new outlet, and anyone who feels inspired, a new creative tool. It's very much in the beta stages at the moment, so you will have to bear with its quirks for a while yet.Storybird is a site where you can set out a short story using the library of images they have uploaded, and then see your very own picture book on screen. They will eventually be offering a (paid-for) print option, and are also looking for illustrators to contribute, so it's a site worth keeping an eye on.
Even if writing children's picture books isn't your usual cup of tea, it's fun to create something for children you know. You would be in good company – think of Tolkien's Father Christmas letters, or even Beatrix Potter who wrote her stories for her nieces and nephews.
Enjoy!
Cressida
(editorial consultant)

Shagufta Malik on December 18, 2011
The BookCreator app available on ipad lets you do similar to above. You can take images from your photo gallery (photos or even your own artistic creations from drawing apps), add text, create a book and either send by email, save to your library or even sell to other ipad users.
My 6 yr old daughter had created her first book within 15mins of me downloading the app (all about herself of course, playing in the snow with her siblings, called The Snowy Day).
A great way to share photos and personalise books as gifts.
Shagufta Malik