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I've always used Blurb. The software (Booksmart) is great, and you can fully customise page layouts (text and photos). There are numerous paper, cover and book size options as well. Customer service has always been excellent as well on the odd occasion when I've needed them. Highly recommended.
As for the collaboration requirement, the only way you could do that with Blurb would be to collate the comments / text and photos from other contributors and add to the book yourself.
PS. What a great idea and I'm sure your cousin will love your idea, however you output it.
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