I use www.cqhost for all the sites I host, or create for my clients. I've never had a problem with there serivce, and they have great prices on the various packages they offer.
As far as what app you should use, FP97 would be fine if thats what your comfortable with. It doesn't have some of the newer standards implemented, but you should be okay. If it doesnt look like its cutting it for you, upgrade to 2000.
If not check out Macromedia Dreamweaver, or Homesite.
I dont use any WYSIWIG's (I do all my code by hand), but from what I've read those are the top two.
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