GoDaddy is very easy on the wallet, and has a nice template setup, so you can easily add pics and graphics. Their big downside, if you read through all the fine print, is that I'm pretty sure they can add on YOUR mailing list to THIER OWN email marketing campaign. They way they had it worded in the fine print made it difficult to understand....you know how that goes!
I see and hear many things from ConstantContact...perhaps they would be worth looking into?