Google docs is free and can be used to easily accomplish all of your tasks. All you need is a Google account and web access.
1. Sign in to your Google account - create one if you don't already have one. http://doc.google.com
2. Click on Create and then click on From Template
3. In the search box at the top of the page, enter "newsletter" and click the Search Templates button.
4. Scroll through the results and pick one that you like.
5. Click on the "Use this template" button and make your newsletter.
Once you're done with your masterpiece, you can email it, turn it into a web page, or download it in several different formats (including PDF). One cool feature in Google docs is collaboration. You can share your project with others and work on it at the same time.