If you know how to program, just use notepad. I love notepad, it's all I ever use.
However, if you are new to it, I'd suggest Macromedia Dreamweaver. You can do some cool stuff with it and it takes minimal programming knowledge.
For hosting your site use Brinkster. (brinkster.com)
It's free, reliable, you get 30 mb of space, supports ASP, and the best part: NO ADS AT ALL! Wahoo! If you use geocities or tripod, I'll kick your ass.