I responded to these questions over at my other blog, HomeschoolMomBlog, with yet another overly-long comment (it is difficult for me not to be verbose at times):

Leann,

Sam agrees with Daryl about sending prints out being the best method instead of printing at home. Fuji machines are definitely your best bet.  Just ask and the photo lab tech can let you know what machine they are using.  Sam has found the best quality from Ofoto online (now KodakGallery.com) and Sam's Club offline (in most areas Sam's Club has online services as well but uploading can be laborious with large numbers of photos to process). He has had spotty results with WalMart.com.

Backup is crucial in digital photography and an area in which many of us are lax.  Read my post at http://www.homeschoolblogger.com/hsmom/1552/ for some things you can do starting today to protect your precious memories.

Depending on exactly what you are trying to do, Sam recommends the Adobe products such as Adobe Albums or Photoshop Elements 3 for organizing and working with your photos for scrapbooking. Sam prefers Adobe products because they are cross-platform. For Apple users, he recommends iPhoto 05 for most applications. Organization has becoming easier with the use of  tags that allow quick organization and retrieval of photos by subject.

Hope this was helpful.