Hello friend! :wavey:
For the first 300 years of Christianity, there was no Bible as we know it today.
Christians had the Old Testament Septuagint, and literally hundreds of other books from which to choose. The Catholic Church realized early on that she had to decide which of these books were inspired and which ones weren't.
Several Church Councils or Synods, were convened to deal with the matter, notably, Rome in 382, Hippo in 393, and Carthage in 397 and 419.
He debates sometimes became bitter on both sides. One of the most famous was between St. Jerome, who felt the seven books were not canonical, and St. Augustine who said they were.
There are always three sides to every story, this side, that side, and the side of truth. Whether Jerome's position, or Augustine's position was the correct position, had to be settled by a third party, and that third party was the Catholic Church.
The Pope stepped in to settle the matter. In concurrence with the opinion of St. Augustine, and being prompted by the Holy Spirit, Pope St. Damasus I, at the Council of Rome in 382, issued a decree appropriately called, "The Decree of Damasus", in which he listed the canonical books of both the Old and New Testaments. He then asked St. Jerome to use this canon and to write a new Bible translation which included an Old Testament of 46 books, which were all in the Septuagint, and a New Testament of 27 books.
Rome had spoken, the issue was settled.
St. Jerome acquiesced under obedience (Hebrews 13:17) and began the translation, and completed it in 404 A.D.. In 405, his new Latin Vulgate* was published for the first time.
A full explanation of the history of the bible, and how it was compiled is here;
http://answers.yahoo.com/question/index?qid=20080928064041AATOZUD
If you have another idea, how the bible was compiled, please feel free.