Hai...
can anybody tell me which algorithm will be better than the lsb algorithm for embedding bits in the image or if you know any book means please refer me and i have google about these a lot but i did not get any idea about this....
Additional encryption of the message or of the address sequence surely makes it more safe, but usually demands the exchange of a key.
Also see the Wiki about this.
Like in a film sequence, where they sometimes hide another picture (mostly an ad) as a single flash, one could hide some "number of bits" in the bytes/words representing the image by replacing (part of) the image pixel information, say 1 byte in a 24bit pixel word, which will generate a slightly different pixel color. For security, encrypt the address sequence.
I don't know much about steganography; just told you my thoughts.