I use PrimoPDF for making all my PDF files and eBooks.  It's really easy to use, has some great features, and it's free.  You can get it here:

http://www.primopdf.com/

I usually type up my file and insert any images using Microsoft Works Word Processor.  When I'm done I go to File > Print and then I select PrimoPDF from the drop down menu.  It then allows me to choose between Screen, Print, Ebook or Prepress, along with Document Properties and Security Settings.  Browse to choose where you want to save your file, hit "OK", and voila!  That's it. 

"You don't know what we can see
Why don't you tell your dreams to me
Fantasy will set you free." - Steppenwolf