For small, dumb pages, I use Notepad, but sometimes I also use CuteHTML for the colored tags 🙂
But for bigger pages, I usually use Dreamweaver 4 to design the site itself, and I use Notepad to touch up some code or to add some custom javascript or anything else. I haven't played much with Dreamweaver's advanced functions, so that's why I still have to use Notepad to edit some pieces of code... and that's also why I don't understand a thing about Ultradev 🙂 hehehe
For the graphics, I use PSP7. I've been using PSP since version 5. I have Photoshop 5 and 6 on CDs (backups... 🙂), but since I began doing webpages on a P200, it used too much memory so I got used to PSP, and it does pretty much anything I want. I'm not really into graphics.
And to transfer files, I use CuteFTP. I discovered FlashFXP, it has a NICE interface... but I'm too lazy to copy all my bookmarks one-by-one from CuteFTP to FlashFXP. I had LeapFTP in the past, and tried several others, but I always found myself coming back to CuteFTP.
my 2 cents