I have made several chapbooks. I drop the text into Adobe PageMaker and add illustrations. The pages are landscape oriented to print two to a page (11 X 8.5 inches) so that when printed they can be folded into a book 8.5 X 5.5, which is a perfect size. A card-stock cover is added and the book is stapled down the spine. Works great for smaller publications, although you can makem it look really professional by having the books trimmed at print shop. It's cheap, I get a single pass cut (about 15 books with 32 pages) for $5 Canadian.

My problem is finding someone who can draw for my next project -- anyone good at illustrating folk tales?