Well, It depends on what you're going for. If you want a web site like this one, you will need hosting that supports PHP and MySQL database. I have used 1&1 internet for about 2 or 3 years and have been very satisfied with their services. they have 24/7 tech support, which is a MUST. A lot of people who build web site's usually get stuck doing it at night..and when you have a question at 2 a.m., it's great to know you can give them a call and they can answer it. Their plans start at around 2.99 per month. I pay 9.99/mo, and that's for 20 gigs of web space, 2000 e-mail accounts (which i'll never use), and there are plenty of other things that come with 1and1.

http://www.1and1.com

Be glad to help you out if you need more information or need help with anything. I'm a web design student and plan on doing this for a living...I love doing it and enjoy helping others, so please don't hesitate to ask for help.

As for software, Dreamweaver..hands down...