You can use any host as you see fit, but I strongly recommend that you avoid like the plague any that do not offer important and common features such as PHP (you will need that to operate any forms, obviously). I use Heart and Web Mania.
As for software, if you want to use it, it is always wise to go with something that actually makes it easier to produce good results from both a technical and creative standpoint. Whether it is for an amateur website or commercial effort, that still applies. Try Expression Web or maybe DW (old, not quite as easy to use, but still good). Or NOF as a third choice.