Data Merge with photos, for a photobook, and also a DVD(?)

I'm using CS4 on a Mac - am considering upgrading to 5.5.
I've used Data Mege to create documents for in-house printing with good success. It seems nearly fool-proof.  I viewed a David Blattner video on Lynda.com that shows how easy it is to incorporate photos into Data Mege as well.
Have any of you used InDesign to create a photobook, and if so, can you reccomend a company that can work with InDesign files rather than requiring you to learn their proprietary layout software?  I want to preserve and share several old family photo options.  I'm scanning the photos and typing their captions into a spreadsheet.
Is there some way this could also be turned into a DVD using the same set-up so that I can make the individual photo files and their captions available to other family members?

For a multiple record merge you need one set of placeholders, then set the margins and spacing in the merge options so the positioning is correct.
Warning: Using Preview in a multiple record merge will corrupt the file. If you press the preview button, Undo after looking at the preview, then merge without using preview.

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