I've done test runs with paperbacks on Lulu, to test their quality, and the quality is comparable. Still, I generally choose to run all my paperbacks on CreateSpace for the huge market numbers. There are now two situations in which I use Lulu.
First, I use them for spiral-bound version of my cookbooks and recipe books. It's nice to have that lay-flat spiral bound option. Lulu does well with these.
Second, back when we began publishing the Mused Quarterly Literary Magazine, Lulu was the best option for full 8.5 x 11 sized full color glossy publications. They do an awesome job with it. Amazon now has that option as well, but after so many years on Lulu it seems a royal pain to move everything over. So we just keep moving forward with Lulu for those.
Really, the main "issue" with Lulu is that most readers don't have a Lulu account. If you say "click here to buy my book on Lulu" it means they have to sign up, enter their address, enter their credit card, etc., all for one book. It's a hurdle for them to overcome. Most readers already have an account at Amazon and might even have free shipping so it's much easier for them to click to buy there. Similarly, with only a few people using Lulu, the chance of someone browsing and happening across your book is slim. On Amazon, that can happen all the time.
So, with that being said, let's look step by step at how to load a book into the Lulu system.
Publishing On Demand Step By Step - Lulu
Lulu Self Publishing - Setting Up the Book
Formatting your Book for Self Publishing
Creating a Lulu Covers
Setting the Lulu Description
Setting the Lulu Preview
Promoting your Lulu Book
Problems and Issues with Lulu
Ebooks on Lulu
Lulu Self Publishing Main Page
Lisa Shea Free Ebooks
Lisa Shea Full Library of Published Books
Getting Your Book Published
Writing Tips and Online Books
Lisa Shea Medieval Romance Novels
Online Literary Magazines
Lisa Shea's Homepage