I created a webpage completely using fireworks--images and all text, etc-- and i used dreamweaver to connect to remote server and put in hotspots to link to other pages. Are my options limited by doing this, assuming all i need is a basic web site? Would you guys recommend making the template in fireworks and adding text/images in dreamweaver? if so, why?
Fireworks is basically a graphics program. Dreamweaver is an HTML authoring environment (and other code, too).
Fireworks has an HTML export capability so that you can make mockups to show people. The code you get out of Fireworks is not robust and it is not easy to troubleshoot or maintain.
What you want to do is design your layout in, and export your graphics from, Fireworks, then build your HTML in Dreamweaver. For a mulit-page site, go with Dreamweaver templates. Once you create a page that looks the way you want, you can save that design as a template. Then, you can create pages using that template. The bonus to a DW template is that if you decide one element needs changing on all your pages, you change the template and DW updates all the pages that use the template. It's pretty slick.
Use FW for graphics, and DW for code. That's what they were built for.