Here is a list of my recommended development tools. Most of them are free! I use a combination of these applications for HTML, CSS, Javascript and database development. They also come in handy for various video editing projects as well.

Firefox
The open-source, free, standards compliant web browser

Web Developer (Firefox Plugin)
The Web Developer plugin by Chris Pederick is a must have addition to Firefox for CSS, Javascript and HTML development.

Firebug (Firefox Plugin)
Firebug integrates with Firefox and adds a number of web development tools. It lets you edit, debug, and monitor CSS, HTML, and JavaScript live in any web page.

Notepad++
Notepad++ is a free text and source code editor and Notepad replacement that supports several languages.

The Gimp
The free, open source image manipulation program with capabilities similar to Photoshop and Paintshop Pro.

OpenOffice
A free, open source office suite that for most people is a far better and cheaper option than Microsoft Office. OpenOffice Draw is free alternative to expensive products such as CorelDraw.

Oracle SQL Developer
Oracle SQL Developer is a free and fully supported graphical tool for database development. With SQL Developer, you can browse database objects, run SQL statements and SQL scripts, and edit and debug PL/SQL statements.