Normally. One would say book early.

However. In this uncertain climate, airlines, tour operators going out of business. I do not feel qualified to give advice on this subject. It would seem by few posts on this subject, others feel the same.
Whatever you decide, if you do get away, enjoy your holiday.

I have just booked for Aug 2009 with mytravel flying with thomas cook airways, Bargain, school holiday time as well.