Just saw this posted by Paul Thurrot. AutoCollage is a product out of Microsoft Research. The application, now a real product that costs twenty dollars, takes an entire directory full of photos and creates a collage. The application has several options that allow you to control the size of the collage, make sure faces pop out, and more. The application is fairly quick and the result is rather a nicely blended picture collage. You can read about it here and purchase it here.
This is a rather nice piece of software. It does the hard work for you and the result is from the typical sharp edged collage most of us seem to produce. I rather like the blended photo effect. I don’t know how the application determines which photos to place where, but the algorithm works well. See my sample collage.
There is a thirty day free trial.