I still use notepad, though mostly now it's for just quick snippets of code in either Lingo or C#. I use Dreamweaver for my web coding now a days just because it's what I've been teaching and I've gotten used to the colour coded code
I tell my students that I expect them to be able to code me something in notepad just as well as they do in Dreamweaver. Too many of them fall into the trap of Dreamweaver's Design View and start asking questions that could easily be solved if they just looked at the code.
One reason I like Dreamweaver is because they are working in conjunction with the W3C WASP to make their "out of the box" code more compliant with the W3C recommendations.