This software will create a full AVI slideshow (up to 2Gb in size) with sound/music, etc. The ssmm slideshow movie maker software has plenty of clever effects and is totally free. There are plenty of fade effects and overlays; there’s even a full online video tutorial (which does not have any sound”This will easily create the perfect slideshow for your family with all the effects and background music you could want.”

You could of course convert the AVI file to another format and burn to CD and post to your granny if you wanted.
This software runs on all Windows operating systems and requires audio in WAV (16-Bit Stereo 44,1 Khz PCM) format.