I tried using Word 2000 for my first website project, but I found that the pages created in Word were riddled with errors.
You will thank yourself no end if you invest in a dedicated web design solution, such as NOF. click here for a free trial, which would be enough to get you started. If you want to try using word, you'll need an FTP program to publish it; some are available free, I think.
If you are looking to change web host, there quite a few good ones at good prices. I use F2S click here, which is well priced and fully specced, but there are plenty of others. Search the forum for web hosting and see what comes up.