Adobe Fireworks CS3
From: Adobe (formerly Macromedia) Price: $299 (full), $149 (upgrade)I do websites. Fireworks is specifically built for web designers. That's why it's the best. Photoshop has more photographic-related features, plugins, effects, etc... but as far as ease-of-use goes, Fireworks 8 is #1. One of my favorite features is how integrated the environment is, allowing full vector graphic creation and raster image creation within the same window. The effects and properties panels are intuitive and easy to use. Once you apply an effect, you can later edit the properties of that effect or remove it, without altering the original object. Fireworks does, however, say they can write your HTML for you... but avoid it if you can. Write your own. It'll be better for everyone.
Update 04/22/05:
Seems Adobe owns Macromedia's products now... I expect to say good-bye to the best web graphics program out there as the next round of updates com around. I'll really miss Fireworks and will not enjoy trying to re-learn ImageReady (haven't used it since it came with Photoshop 5).
Update 05/30/07:
Yay! Fireworks is still a part of the Web Suite from Adobe. It didn't get the GUI update that Flash got to match the rest of the Adobe apps, nor does it integrate very well with anything much more than it did before. Seems Adobe's reason for acquiring Macromedia was Flash, hopefully we'll see Fireworks improve with the rest of the lineup soon.
Screenshots:
 Fireworks GUI |  Export Preview |  Real-Time Effects |
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