Firstly you need proper software to assemble the photos, decide on the duration of each, the transitions you want to use, and how to pan and zoom individual photos where required, and add proper titles. For this I use Photo to Movie. You can read about what it can do on their website:
(Other users here use the alternative FotoMagico: http://www.boinx.com/fotomagico/homevspro/ which you may prefer - I have no experience with it.)
Neither of these are freeware, but are worth the investment if you are going to do a lot of slide shows. Read about them in detail, then decide which one you feel is best suited to your needs.
Once you have timed and arranged and manipulated the photos to your liking in Photo to Movie, it exports the file to iMovie as a DV stream. You can add music in Photo to Movie, but I prefer doing this in iMovie where it is easier to edit. You can now further edit the slide show in iMovie just as you would a movie, including adding other video clips, then send it to iDVD 7, or Toast, for burning.
You will be pleasantly surprised at how professional the results can be!
To simply create a slide show in iDVD 7 onwards from images in iPhoto or stored in other places on your hard disk or a connected server, look here: