Well S-Man, what to charge is an interesting question. Are they really close friends of yours or just aquaintances?
I either do things completely free as a gift for close friends, or charge my going rate for others, but throw in extras like additional prints, service, specially pp work, etc. since if there is some sort of relationship or "history."
You can go several different ways regarding albums. Most expensive and nicest would be a bound Leathercraftsman book or some other similar vendor. That scenario is top notch, beautiful, will last decades, and will cost you the most.
Another suggestion is to shoot 4x6 proof size, and then buy one of the many styles of proof books on the market that will accomodate that format. I do that all the time with my wedding, bar mitzvah and social event shoots. You can get a high quality comb style binding with engraving (not leather) that will hold 200 prints for under $40. I get mine from www.albumsinc.com
Another alternative is the Asuka or "magazine style" book. I have no direct experience with these myself, but many here use them. You send the vendor the image files, and they reproduce them (lithograph style?) on non-photographic paper I believe and then bind it all together in a soft or hardbound book.
How much did you want to spend? - Stu