Using photographs of friends and family for gift wrapping.

Using old pictures/new pictures is definitely a personal way to wrap gifts.  There are some good ideas out there about using pictures not yet digitized without ruining the photos:

Sweet Paul did a collage on 11 x17 paper and copied it.

Flourish Anyway used a similar approach.  She gives detailed instructions.

You can also use photos as gift tags. Follow this link to Sweet Paul for how tos. 

Or follow this example from Photojojo:

Photojojo gives very good detailed instructions on how to do this linked here. 

And finally, from Evermine. You can order these, just upload your photos and they do the rest.