Hi Julie,
I was also thinking of a scrapbook, but the biggest problem, is that there is only one copy, and if you want to send it to relatives, then you have to think about how to copy it.
My "mailing list" is 14 people, 4 of whom (over 75's) don't have a computer.
I think this is what made me go the hypertext route - which is, basically, an electronic scrapbook - because I can make as many copies as I like, paper or CD.
I like your idea with the diary. I don't keep a diary, but I have recently found three of my mother's diaries from 1938 to 1942. These cover the time when the family fled from Vienna to Prague and thence to England, and the outbreak of war. They are written in german, so I am translating them and will include excerpts in my book. (including a few scans, for the handwriting !)