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Pay your money and take your choice
Or maybe make your choice and don't pay any money, let's have a look at a few specific cases and see what the best option would be.
 
A Personal Web Page
Most pages of this type only need to display text and pictures for family and friends to view. They don't need page counters, guestbooks or chat rooms. So if you have an ISP and are given space for a web page, then use that, it won't cost you any extra
 
A Hobby Page

If your hobby is not directly computer related, then once again the space provided by your ISP will suffice. Even if you want counters and guestbooks, you don't have to have them on your site. There are companies that can provide them for you, with the obligatory advertising of course.

If you want to create your own page counters and guest book you will need a server that can handle the CGI scripting required to do this.

If your hobby happens to be creating web pages or multimedia, then you may require the extras that are only available on a paid hosting server.

 
Running a Business

There is really no option here. You need a paid hosting service, although be aware that each hosting company offers a range of hosting packages at varying price levels.

The price that you pay will determine the amount of hard disk space that you have available on the server, the amount of downloads that are permitted before extra charges apply, whether or not your get access to secure servers for e-commerce and maybe a few others things.

Basically the more you pay, the more you get, just make sure that you don't pay for something that you don't really need. If you are not sure, then start with one of the basic options. The webhosting companies will quite readily let you upgrade to another package if you find that you need it.

 
You are using FrontPage

Don't forget, if you are using Microsoft FrontPage and you want to use the FrontPage extensions, then you will need a webhost that supports them.

If your host doesn't do this, you will either have to change to a host that does, or turn off the extensions from the Tools/Options settings.

> Plan the appearance

 

Need more information - Check out Amazon's books on web design
 
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Web Design
Step by Step
Define the purpose of your web site
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Plan the appearance
Plan your navigation system
Plan the physical layout on your hard drive
Design your site on paper first