I would recommend creating the logo in vector format. Adobe Illustrator is my tool of choice, however inkscape (inkscape.org) is a free open source vector program that should work well for logo creation. The benefit of creating a logo in vector format is that it can be scaled to any size without degrading its quality.
AAA logo provides many examples and we can combine them into a logo which we want, although after that I worked on it in coreldraw or adobe illustrator
just search on net for logos. and take ideas about your logo. then you can use Photoshop, its best tool for creating logos, or if you want a simple logo, there are many website that provide free logos, i have used one of them but now i forget name. Google it hopefully you will find.
It depends where are you using the logo; is it for print or just for web? If you need it vector or raster it makes a very big difference. If you need it raster then Photoshop is what you need. If you need it vector to be used in a larger branding campaign then you should first sketch the logo on paper. After you have done a couple a sketches you'll like one more. Then you scan the sketch and import it in a vector program (I would use Corel). You vectorize the logo and you fill it in BW. After you have the OK of your client you play with the colors so you'll match his corporate colors. Then you can export it as pdf or whatever format you need. For inspiration search on internet; there are a lot of galleries.
NeoChrome is probably better than MS Paint for logo design. It does however require specialist hardware that is expensive and difficult to acquire.
Being a logo designer i would like to suggest you illustrator. I think this is more friendly than other tools.
Logos are drawn in vector format, so Adobe Illustrator which is the industry standard is the best and the complete tool. If you want something free, try Inkscape.
I don't think that AI is the industry standard. Corel is also used, mainly in big printing centers, mostly for offset. The standard is pdf. It doesn't matter what you use to make the logo, just use CMYK, convert the text to curves and leave bleeds.
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