There is no "best" really, it depends on what you want to achieve, personally i consider Photoshop my best friend, i can design in Illustrator and Corel Draw but Photoshop all the way for me. Plus there's that vector v raster debate
Yeah to sketch something in vector Adobe Illustrator is best available software to do so! then you can sylise your logo using photoshop tricks
Hmmm...... I've been using Laughing Bird logo creator and my logos have always turned out GREAT! It's also a less expensive alternative! Gary
Adobe Photoshop is probably the best package to use, however, if your logo becomes quite complex for a better resolution use Adobe Illustrator
hmm.. adobe illustrator hav some more options i think.... both photoshop and illustrator works well..... al u need is practice