Herb Greenberg's Market Blog has a post with a link to his interesting Wall Street Journal/Marketwatch piece about Shutterfly (NASDAQ: SFLY) entitled "Why Shutterfly may not be picture-perfect". The article highlights the company's transition from a technology to a manufacturing concern, at least in the eyes of former board chair, Silicon Valley legend Jim Clark. One of Greenberg's "aha's" is the old "shipping-and-handling" charges and their role in driving the bottom line. Worth reading.
BTW here's the link to the PC Magazine story that references Shutterfly's competitor MyPublisher.