That's the 1 million dollar question. Usually I ask the B&G to select their favorite photos, then I add my favorite photos, some supporting photos, and finally some I took for backgrounds. I process them so the basics are done (levels, contrast, etc), and sometimes I do a little photoshop work (B&W, interesting effects, etc). Then I batch them from RAW to JPG, import them into my album design program (PhotoJunction), and do my design. I often find myself going back to the RAW files to make a change, or add another photo I need, so I have to process more to start with I think. Once the album layout's complete I do any further photoshop work that's required, import the photos into PJ, then drag and drop the updated images onto the pages. Next is client proofing, then production.
Also, somewhere in there, I often post a half complete design to POTN for thoughts and suggestions, which are always very helpful! 