Very interesting subject. For my wife's bday, I secretly collected old slides and prints from her parents and scanned them to produce a photo album that goes back to when she was a baby. http://mom.smugmug.com/gallery/172/2/5510
I thought the results, for the most part, were pretty good considering the sad state of the slides, being faded and dirty.
We did it ourselves with an Epson flatbed scanner with a filmstrip attachment. Half the key was adjusting the photos in Photooshop afterwards. But it was a multi-day project.
We've talked about offering such a service as part of smugmug or forming a relationship with service bureau that does it, but no decision yet.
The scanner can be had relatively cheaply if you're interested in that option.
Baldy, if you're gonna mess with old pics big time, you HAVE
to look at Applied Science Fiction's Digital Ice, Roc & Gem. I was _very_ wary about auto-whatever, but my new Nikon scanner has them and they just blew me away. Amazing!
Some parts (Ice) need specific hardware, but Roc is available as a standalone (plugin to PS?) app. It really does work. Cut my post-scanning editing times over 30% just with Ice alone. Big