I would like to be able to print a booklet, each page size 4.25x5.5 (of a quarter of a 8.5x11 sheet of paper). There should be 8 pages per page (i.e double sided printing) and the pages should be organized so that the sheets can be folded resulting in a booklet that can be stapled in the middle, on the seam. I could not get ID to do this; the closest I got was 4 pages per sheets meaning half of the sheet was blank. Any suggestions.
If it cannot be done by ID, then make a real dummy. Make sure you mark the page numbers differently for recto and verso. That way you can make a template in Indesign and place the pages on the right spot.
Other programs can do the trick too, but imposition programs aren't the cheapest to get.
How were you setting up the print? I would think that Using Print Booklet and setting it to 4-up perfect bound would do what you want, but you would need to set the signature size to the number of pages in the booklet.
You can also create a new file 4.25 x 11 or 5.5 x 8.5 depending on the orientation, then use Scott Zanelli's script (InDesignSecrets » Blog Archive » Zanelli Releases MultiPageImporter for Importing both PDF and INDD Files) to place the pages from the original file twice so you have two copies of the booklet stacked together. Then run Print Booklet with 2-up Saddle Stitch and cut them apart.