When I was in high school I took two fibers and weaving courses. I learned a lot of really awesome things, one of which was book making. I think my favorite kind of book binding that I learned is the Japanese stab book. There are a ton of different stitches and designs you can do and it can be used on a soft or hard cover. This book was actually really cheap to make too. I bought a notebook at Walmart on clearance and cut the front and back cover off. Then I painted each cover white so the weird design wouldn't show through. I cut the matboard covers to the right size and used modgepodge to adhere the decorative paper. I got the paper from the Indian Fall paperpack. (I also got that paper pack on clearance). The inside pages are just printer paper that I cut to the right size.
If I have enough interest I will do I step by step tutorial on how to make this book so if you want me to do one LEAVE A COMMENT. I want to post things my readers are interested in but I have no way of knowing if you don't say something. Pretty please leave me a comment.
A great place to look at handcrafted books is http://katiekennington.com/ she is really great at thinking outside the box when it comes to book designs and she uses a lot of different things to cover her books that you wouldn't...or maybe I...wouldn't think to use.