Well, I'm afraid, if you're doing a book that includes graphic illustrations, it's not that simple. Pages is excellent for setting up a manuscript, but I wouldn't expect to get all the way through production with just Pages (or with just Word or any other word processor.)
I'll give you an example: For O'Reilly, I work in a hugely complex Word template, which means that when I send the manuscript, it's already nearly totally formatted as the text is going to appear. But although I do this, and send in very carefully corrected photos for the figures, it still gets torn apart by production--the graphics go out to the artists who do the color seps and recorrect them for CMYK, the text goes to someone who goes through and substitutes any symbols they have their own in-house font for (like the symbols for the various keystrokes). Then the whole thing is put into Framemaker, a color pdf is made of the final layout, and that is sent to me for final proofing, both of text and graphics color, before it gets plated, or if we're in a real hurry, I get a grayscale pdf and separate large sheets of the graphics to check.
I'm not saying you couldn't do this, just that it's a large complex task if you want to include color. A novel wouldn't be that hard to do.
In your case, I would suggest maybe investing in a good photo quality printer and a cheap laser for the text. I have often printed brochures and such by making two copies of the file, one with the b&w stuff and one with the graphics, and running once through the laser for the text and once through my inkjet for the graphics.
If you are doing this at home, rather than CMYK, you need: 1. a good quality printer (canon or epson would be my choice), 2.the right ink and paper for that particular printer, or you can convert the file all day long and it will look lousy when printed.
For the published version, that's what publishers and graphic artists get paid for. If I were to publish a printed book myself, I'd definitely factor hiring someone who knows about production to help with the layout/final file/color sep process.
EDIT I should mention that there are several active maling lists for self-publishing authors, where you can find knowledgeable help from people who've done just what you want to do. I would definitely investigate joining one of them. It could save you a lot of tiime and grief looking for publishers, artists, supplies, etc. (I might point out that distribution is the toughest part of self-publishing, much more so than creating the physical book.)