I hand-code web pages in Adobe Dreamweaver. Its code view helpfully colour co-ordinates the html and css code so I can read it much more easily; and if I forget a css attribute DW helps me figure it out. Dreamweaver is also really handy for big websites when you need to do a lot of 'find and replace' and need site-wide reports, and for publishing the site using FTP. Only problem is the cost, it's not cheap.
Adobe Fireworks is a good web graphics tool although not as fully-featured as Photoshop for general graphics work.
I've heard mixed reports of NVU which is a free and open source web design product: simpler than Dreamweaver but perhaps better for the hobbyist or someone with just one website to run, than the professional.
Don't use Microsoft Front Page: it creates ghastly code.
Microsoft Web Expression sounds like a much improved version of Front Page but if you work with PHP code, bad news, it doesn't support it.
And what about the owners of the website? How will they update it?
Adobe Contribute is easy to learn and relatively inexpensive web content editing software and will work with static web pages created by any other software.
WordPress is a free and open source content management system that can be installed on the client's webspace. Or there's Joomla, Mambe, and many more.