I would recommend learning how to script css + xhtml from scratch. In my experience, software-generated codes are larger than necessary and sometimes dont even work in all browsers. A quick look in your source code shows that you're using tables for the layout. Using css (div's) to build it is adviced.
As for software; I'm using adobe dreamweaver, but just because it shows php code in a usefull way, but for practicing you can also use notepad if you like.
Now, for graphics, I would recommend Adobe Fireworks. Especially for webdesign, because it's all easier to edit later and all shapes you draw are vectors. But that's my opinion. I bet u can do good with photoshop too. I've used other software (for example Paint Shop Pro), but wouldn't recommend it. It might be cheaper but it didn't have all the things i need for my designing.
You can take a look around at w3schools.com
for tutorials and more information about the importance of valid scripting. Good luck!
Edited by tychobarnard, 01 August 2009 - 08:31 AM.