Go Daddy, Dreamhost, Canadian Webhosting -- lots of decent, cheap web hosts out there.
As for software, if all you're looking for is an FTP client to handle synchronizations, check out FileZilla:
http://filezilla-project.org/
If you are on a Mac platform, let me know and I'll post a list of all the good software I use.
For a good CMS that doesn't take long to modify, check out Wordpress:
http://wordpress.org/
For graphics, you can give "The GiMP" a go, but nothing actually replaces Adobe's Photoshop despite what the evangelists say:
http://www.gimp.org/