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I ended up buying the Philips digital photo frames as they were on sale for a price I couldn't pass up. I did the 7.0 frame size.
What I did was spend about 12 hours going through just under 100 CDs of photographs that I took during my time with my daughter. Pictures that only her and I had seen up to this point.
What was interesting is that I used an image optimization process that I use for the web when preparing these as gifts. Oh, I preconfigured everything for both Grandmoms so they didn't have to do anything but plug them in. The specs said around 50+ images (using their internal image editing software). I ended up getting 100 images on each frame using Fireworks and cropping to exactly 720x480 and using a display based resolution setting.
I was able to predict the responses from everyone around when the gifts were opened and put on display. I mean, there were close to 30 people there and you could hear the oohs, aahs, laughs, more oohs, aahs and more laughs. It was hilarious. There were even tears. :)
If you want to do something really special for someone, get a digital photo frame. Put together a library of images that are sure to capture everyone's attention. Spend the time in cropping and optimizing so you can get the most bang for your buck.
The other neat thing about this is that I will be updating those image libraries on birthdays and other special events. Since there are media slots, I can easily download a new library here, take it there and upload. Very simple process. Or, just send the media card to them and let them plug it in.
Those digital photo frames are mesmerizing! I saw some that should be classifed as desktop displays. You might as well put a slideshow on a computer screen. :)