I amde a book cake last summer (in my pics), this link was a lifesaver: http://cakecentral.com/cake-decorating-ftopict-628199-book.html . HTH.
Here's a photo tutorial from one of my favorite blogs: http://thefrostedcakencookie.blogspot.com/2009/05/graduation-cake.html
Let the top piece of fondant dry for a day or so. That way the "top cover" will be firm enough to extend over the "pages" of the book. Lay you cake on a piece of fondant (which will be the back cover of the book). Use fondant for the book binding as well.
I used ivory fondant for the "pages" and just took the long edge of a ruler and made lots of lines. If you don't have ivory fondant, you can use white and paint it with vanilla extract. I have a book in my photos. Good luck.
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