I am seconding GammaPhiBabe's advice. If you are just strictly wanting to create a newsletter that you will be producing on your own, Publisher is a great utility. Also, as a bonus, you can convert your Publisher file to a webpage with very little extra work (you just insert links between pages).
If you really wanted to get in depth with layout, you would do Adobe PageMaker or Quirk Express. They aren't as easy to use, but they are the standard if you will be sending your document to a printer to produce.
Just some of my thoughts...
