There are several ways to do this, but it really depends on what you want to have on your website.
If you want to have a simple but really good-looking website with minimal effort and almost no coding use the content management system. I like Joomla because of all of the plugins, modules, extensions, templates and so on.
My team's website is still being worked but we use a forum software to run the website and act as a sort-of content management system. The program is MyBB and seems to work well enough but the website is still in development.
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You might be able to get microsoft expression free through a program like dreamspark or MSDNAA, if your school is eligible.
My most complicated web page I've designed has maybe 30 lines of hand coding, the rest are all generated by using the graphical editor, and choosing settings from dropdown lists. You can get code for embedded chat from Meebo, and just drop it in thne code view where you want the chta box to appear, maybe have to tweak a size setting if you want it to be a specific size.
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Yes.
If your school is eligible use them to get the Expression Studio or Microsoft SharePoint Designer. If there is a community college in you can probably get the software by taking a class that participates in the MSDN. That's how I got my copies of a lot of software.