I recommend making 1 category for the chapters of the book. Another category for Site News, or Author's thoughts.
Have the home-page display only the Category of Site News. You can make a post each time you've put a new chapter, "Check out the new chapter in the Book category." This home-page category can function like a normal WP blog, with the newest entry showing first at the top.
Now make a special Category-2.php Template for the Book category. Here you can set it to display in chronological (not reverse chron) order. So when you click this category you will always see the Chapter 1 first, and it will read down the page in normal order. If the book is short you can make all posts, entire posts, display on this page. Or you can have click to the next page. Or you can delete the_content and the_excerpt and only display the_title and postmeta like date/author so your page will look like:
Chapter 1 -- posted on XX date, posted by XX author
Chapter 2 --
Chapter 3 --
etc. (all clickable to go to that individual chapter)
Also I recommend the wp-print hack/plugin by GaMerZ. This gives you a second "CSS" that is more printer-friendly.
On top of this I now recommend a very new plugin posted yesterday on this forum by Kafkaesq, called Next Previous Post URL Plugin. You can use this in combination with wp-print and proper .htaccess rules (explained by GaMerZ) so that the reader can go on Chapter 1 /print/ page, and from there you can have the Next Post link going automatically to the /print/ version of the next chapter. In this way you can read and navigate from chapter to chapter while staying in the Printer friendly view (black and white, liquid layout fills the screen width). Example on the "print this article" links from my page http://honesttune.com
If you get this final idea right (takes a little work -- not finished making mine do what I want; getting closer), for the user it is very much like turning the pages of a book, since you can seamless navigate from the bottom of the current post to the top of the next post in proper order.