Hello S.
Great Idea! We are also investigating the use of cd's this year instead of bearing the expense of printing up a paper journal. On the CD, instead of doing just songs, how about having the songs play behind a picture display using either PowerPoint or Microsoft's Photostory. You can appeal to two senses; hearing and seeing. Mix in old pictures with new ones. This might generate some interest. Photostory is free to download from the Microsoft site and is very user friendly.
Good Luck in whatever you decide to do.
Peace and Blessings.
April