Blue Host (www.BlueHost.com) is the best in the business. Cheap domains, reliable hosting and excellent customer service. They've been our host for over a year now, and we love them!
Web Development Tools
Adobe Dreamweaver (http://www.adobe.com/products/dreamweaver) Simple to use web authoring tool that allows you to create a solid website by design without knowing code. Also a great option for more experienced web designers.This is what we use. Save yourself a small fortune and buy an older version.
XSitePro (http://xsitepro.com) While we haven't used it ourselves, several people we know love it. Like Dreamweaver, you can create websites without knowing code.
NVU (http://net2.com/nvu/) Free web authoring tool, though certainly not as robust as the others.