I used Lulu to create review copies of Merlin's Blade, and it worked fine. The books weren't cheap, but the fact that I was able to get them at all and actually hold my book in my hands for the first time was amazing.
BUT ... if you are planning on actually self-publishing, I would never go with Lulu or Createspace. I would go direct with Lightning Source. I've studied lots of blogs of people trying to break down the numbers, and its pretty obvious you can sell your book for less and make the same kind of money by selling direct through Lightning Source. A lower price means you will definitely sell more copies.
I've even read a website trying to convince me to NOT go with Lightning Source, and when I look at the $$$'s they present using both methods, it convinced me the other way ... I really don't know what the person was thinking.
HOWEVER ... it is harder work to go with Lightning Source ... you basically have to set yourself up as your own little publisher, etc. So it is not for the faint of heart. Yet if you are serious about self-publishing and doing it right, then you really need to figure it out and bite the bullet.
My viewpoint! Anyone else have a different perspective who's actually used Lightning Source? I haven't yet, and I may not have to if one of the two publishers looking at Merlin's Blade sends me a contract.
-Robert