Since ours were all digital pictures, I just did up a big document in Word and put 2 pictures per page so I could type captions under each one. I put the date and a short description, things like:
March 2009: My parents came to visit and met my husband for the first time.
June 2009: Husband and I went to Greece on our first long trip just the two of us.
April 2010: Husband's brother got married; family photo including me at the wedding.
Stuff like that, just short descriptions but included the date, the people, and the location/occasion/circumstance.
We picked pictures that showed a mix of people with us, or otherwise were "events" in our lives - people visiting, meeting family, taking trips, family occasions (like when his brother had his kids), etc etc.
I think we had about 30 pictures total, so that would have been 15 sheets of paper I printed.