Hello dvdljns,
To avoid making it more complicated than it needs to be, unless you feel you need to learn HTML and CSS, there is a free photo album generator that I've used quite a bit.
It might be the easiest approach for you.
Have a look at
http://graphicssoft.about.com/gi/dyn...m%2Findex.html
Your family could flip through the pictures and save the ones they want to keep using the mouse rightclick/save as.