I've been making websites since 1997, back in the days of "Geocities". A lot has changed since then as far as web technologies go, but many of the steps involved in a creating a website have not. Just take it one step at a time.
Start out with a single HTML page and think of it as an online business card. A photo editing program like Adobe Photoshop Elements will definitely make life easier, allowing you to create a title banner and edit a few photos for web use (color correct, crop, resize). Once you get the hang of writing basic HTML and working with photos, you can add new pages in minutes, and for the HTML, you don't need any editing software other than your basic notepad text editor.
For hosting, try Godaddy.com (yes, the one with Danica Patrick in their commercials). You can get a year's worth of domain registration and hosting for less than $60. Once you setup the service, uploading new files to your site is very simple using an FTP program. I use a free one called "Filezilla", which IMO is one of the best out there.
My latest project is my company's site,
http://www.glacern.com, which I wrote completely from scratch using a web programming language called PHP. It's made up of hundreds of files that dynamically create a user experience through photos, videos, flash animations, and database driven e-commerce, but it all started out as a single page.
If you have any specific questions, feel free to ask!
-Sol
Glacern Machine Tools
www.glacern.com