Quick update on my efforts to make books: I received the remade book from Lulu. It was much better. The quality is actually pretty good. It's not equal to the printing of a high priced photography book from one of the elite publishers like Abrams - but it's not bad. I also ordered a small ten page test book to see how the printing worked with a variety of different colors and contrasts. What I discovered is that in order to come close to matching the saturation levels of the colors on the screen, you must increase the saturation in the file by 20 -30 %. This is not news to any of the prepress people out there, I guess. There is no way that the reflective value of paper could match the brightness of the light coming from the monitor screen - so you have to compensate.
There are some positive reviews of Lulu Press' work in the comments on making books part two. Check them out. One of the comments is from the publisher of U&I Magazine which is printed by Lulu. I'm going to order a copy.
making books part one