I agree with the points made by jayemm - I too found it different flying friends and family to flying on my own or with an instructor.
I would definitely take just one person the first time, and make this on a route you know well in the local area. This is for your benefit more than their's.
I remember well the first time I had an aircraft full of 3 non-flying pax. It was in Piper Dakota (PA28-236) to which I had only recently converted, adn ti was the first time I had taken off in this on the grass with flap, as opposed to on the tarmac with no flap. No big deal, but it was amazing how nervous I felt during the take-off roll and until I'd cleared the circuit - I just felt so responsible for these innocent people - my friends - and this feeling nearly overwhelmed me! Once I was about 5 minutes into the flight, I felt fine - in fact it was an excellent shower-dodging trip to Wolverhampton, with some great pax who were really interested in what was happening. I was also able to give them a turn at the controls (just aierons) on the way home - its lovely to see how this excites people (those that want to - I had one who was VERY afraid to touch anything!).
Anyway, I've done similar flights several times since and I am fine with it now - but I am much more conservative on weather, wind etc. limitations if I have non-flying pax with me than if I have another pilot in the aircraft.
Always brief your passengers on the ground - practice this when you take the first one on their own. I always point out a few things - how the seatbelt works, how to open the door, what will happen if the engine fails ("don't worry - I can easily land in a field, but I'll ask you to brace and perhaps to open the door if I can't"), and I reassure them that if at any stage they feel uncomfortable they should tell me and I can quickly get us back on the ground. Point out: sick bags, fire extinguisher and first-aid kit.
In the air, if they are doing OK, I ask them to look out for other aircraft and to not hesitiate to tell me if they see something. I also try to remember to warn them of the changes in engine noise on the approach and not to worry about the stall warner horn going off. I usually have a spare map, and show them the route and let them follow-along if they are so inclined.
I agree with Whirlybird too - tell people you'll be abit busy and need to concentrate a bit, so please not to interrupt you when you are landing and taking off - and DEFINITELY remember to make sure front-seat pax have their feet nowhere near the bl**dy rudder pedals!
But again, I think that in the early stages, its more of a worry how YOU feel, so take it slow at the start - just one or two initially before taking up a big group, and also initially remove navigation stress from the equation and stay local.
Another thing to watch out for is that you can feel rushed on the ground if your pax are present when you are planning, checking tech log, wx or NOTAMs etc. Get there half-an-hour before they do, then you'll be relaxed when they arrive knowing you've checked off the major tasks.
Hope this helps,
Andy
[ 19 February 2002: Message edited by: Aussie Andy ]</p>