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Totally right about InDesign and I do have it on this machine but A. I forgot I had it and B. and perhaps more importantly, I don't know how to use it.
Got there in the end and managed to wake up early enough to take everything to the printers this morning and best of all it doesn't look like it was designed in PAGES the night before. But I'm putting that down to good paper stock.
CYOA
You can insert images (from anywhere) into pages using Shift + Command + V or Insert menu, drop down to Choose...
You're not stuck with media/iPhoto.
As for layout you have to make sure the images are set to floating, not inline. When it's set to inline they are auto aligned on a grid, much like word does.
To scale the images together you must first group them, it's up there in the Arrange menu, or alt+cmd+G
It's still a shit application and Indesign is what you really need.