"Booklet Creator is a free online tool that allows you to create a booklet from a PDF document. It reorders pages so that after printing and folding the pages, a small book is created. "
You need to start with a PDF file, so if you don't have Acrobat or PDF export/save as in any of your software packages, you can go HERE to see how go get a free PDF creator (CutePDF).
It is extremely easy to use. Simply select a PDF file on your computer, choose the number of pages and page size (I selected "ALL" and "AUTO") and then click "create your booklet". In a few seconds it is done and asks you where to save the file to. The file is saved as a PDF file. It did a great job on my test projects and I already have some great ideas on how to use it.
In class, you could use this to have students easily create booklets as a project, or turn some of you own handouts and materials into booklet formats.