I use Adobe Photoshop to design my layouts, or on some layouts I just use it to create the necessary images, depending on what kind of layout I'm doing. I use DreamWeaver for my coding, but mainly because it colours my code, I don't use the wysiwyg part at all...apart from the coloured coding, I also ocasionally make use of it's built in knowledgebase. Apart from that, I DO code everything by hand...exept the things I have insufficient knowledge for, but only if it would take too much time to master it myself.
Recently though, I've begun to use Mambo, an open-source (free) Content Management System ("cms" for short)