The best software for this purpose I have found is Cheap Impostor.
It has the features you describe:
- Imposes PDF files for books and magazines
- Reorders and 2-ups pages for binding magazines and books
- Sheets per signature can be varied from 1 to magazine/booklet
- Supports automatic and manual duplex printers, with and without collation
It is already useful in the unregistered version, but registration at $35 is reasonable and worth the cost.
The website has some useful links how to actually bind the book. I have used this process and added some improvements for my own needs.
I have printed and bound many books and booklets, usually by printing out 1-page signatures, folding them and glueing them with wood glue. I use a homemade press similar to those described in the links, but made from metal. I cut a piece of gauze bandage or book muslin and put it over the still wet glue. This makes the binding more durable.