A long time ago I got a huge Martha Stewart family tree diagram as a birthday gift. It was a lot of work! I had to track down relatives on both sides and quiz them about their long lost loved ones. Not to mention writing all the long names on these tiny little leaves and mounting them on the chart. It turned out very well, and it hangs in a place of honor in my living room.
Since I already had the names and years handy, I was inspired to do smaller scale trees as gifts, but my version has photos included. I really love this, it makes you feel so connected to previous generations if you can actually see what they looked like. And now you can understand why you look the way you do. Or where your daughter got her cute little nose.
I drew the trees on my computer, then output them to nice paper. I mounted the scanned photos on round metal tags you can get from the craft store. I drew the leaves on the computer with the names and cut them out. Then I mounted the tags and leaves with foamy picture mounts that have some height to them. I made mine to fit in 8x10 and 8.5x11 frames (you can find 8.5x11 frames for certificate and certification framing).
There's a similar project on Martha's craft site that you do with a shadow box that I think looks really great too.