Image editing software may be required. I know of no good freeware applications. There is good shareware. There are good inexpensive commercial offerings, such as Adobe ImageReady. Then there's the cat's meow, PhotoShop, at a few hundred dollars.

HTML editors are often no more than $100. Many shareware products are available, such as HotDog and HoTMetaL. HomeSite is approximately $150.

Authoring tools can very expensive. Microsoft FrontPage costs $200-300; Dreamweaver and GoLive are around $500.

Dreamweaver does not necessarily include an image editing components. If you need to create and edit images with Dreamweaver, be sure to pick up the Macromedia Dreamweaver/Fireworks Studio. This will set you back about $700.