what is the best way to set up a web site.?

Well first I can tell you to learn HTML and CSS, maybe take a class or two at a nearby community college. Then worry about getting a domain. I would like to give you a good company to use but so far I have not found any sites worthwhile, they all just want your $$$ and you get hardly anything in return. So what I want to do is learn how to create a domain without the help of a domain provider. I am not sure if this is even possible tho. try the site w3schools.com for starting tips on HTML and CSS and other stuff

Try Blink Web or Wix, their easy to manage free website (or blog) has cool features that include drag and drop capability, switch designs on the fly, youtube and google video, custom html, upload images, flikr photo gallery, visitor stats and more. You can also buy a new domain instantly, or host your existing domain for free and make it your own (www.yourown.com)

If your looking for something more advanced but still user friendly then try XsitePro, Site Builder Designs or Site Rubix, they have everything you need in building your own website: domain name registration or domain transfer, web hosting, web builder, site maintenance and email accounts. Everything is laid out in an easy to follow step by step instruction. Some of the features included enable you to add your own themes, videos, images or mp3 music making your site unique to you. Pricing is comparable and affordable too.

I hope that I was of some help and answered your question.