YearbookYourself style Interaction help!

Hi, need a bit of help.

Im building a website for a childrens book im making, where people can buy it custom tailored to their children, with their names and pictures appearing in the book.

Im trying to make a ''sample'' section of pages where people can upload a picture and see what it will roughly look like on a sample page. At first i didnt think this would be possible, but then i stumbled across yearbook yourself.

link here -> http://www.yearbookyourself.com/

This is the kind of thing i was hoping to achieve and was wondering if there were any basic / less advanced ways of doing this. I have adequate knowledge with Flash but the whole process of this makes my mind explode.

I tried looking on google but nothing useful turned up with any searches. So any help to get me started would be greatly appreciated.

Many thanks