I actually just use word and I have a few different layouts I have done. The layouts for the pictures are always different depending on what I am dealing with and how I am grouping them.
ie I group a whole page of pictures if we celebrated a birthday with a banner at top
I group outdoor pictures and pictures of a particular toy they were all playing with and enjoying etc. i.e if blocks are a current fav and I have pics of the kids playing with various blocks on different days then I group all those pics.
I usually have the same title across the top of my newsletter but other than that I like to mix it up and make it interesting each time