I've done this in Scala.  The Dr Dobbs article was extremely useful to me.
Sample image:

Here's my basic algorithm:
def createMosaic(targetImage:BufferedImage,
  index:PhotoIndexer.PhotoIndex,
  opacity:Float,
  targetWidth:Int,
  targetHeight:Int,
  numRows:Int,
  numColumns:Int, callback:PhotoMosaicCallback): ImageGrid = {
      var indexCopy = index
      // Map from the buffered image to that image's average color
      var colorMap:Map[BufferedImage,Color] =
      index.values.map(data => (data.thumbnail, data.avgColor)).toMap
      // We look at rectangular regions of the target image, calculate their average
      // colors, and then pick images that match those colors.
      val sampleWidth = targetImage.getWidth / numColumns
      val sampleHeight = targetImage.getHeight / numRows
      // Used to report the progress of the process
      var counter = 1
      val numSubImages = numRows * numColumns
      val imageGrid:ImageGrid = Array.fill(numRows, numColumns)(Nil)
      // for each patch in the image
      for (row <- 0 until numRows) {
        for (column <- 0 until numColumns) {
          val x = column * sampleWidth
          val y = row * sampleHeight
          // This is the small rectangular region of the target image that we're
          // currently considering
          val subImage = targetImage.getData(new Rectangle(x,y,sampleWidth,sampleHeight))
          val avgImageColor = calculateColorFromRaster(subImage)
          val nearest:Seq[BufferedImage] = getNearestColorImages(avgImageColor, colorMap)
          // nearest is in sorted order; pick one of them and draw it to correct place in
          // image
          imageGrid(row)(column) = nearest
          callback.photosCalculated(row, column, nearest)
          val percent = 100.0 * counter / numSubImages
          // TODO: for GUI version, use a display bar
          if (counter % 100 == 0) {
            println(percent + " completed (" + counter + " of" + numSubImages + ")")
          }
          counter+=1
        }
      }
      imageGrid
}
My full sourcecode is available on github