I love PhotoShop CS3, CS4 is a tad bit more difficult for me. I am no designer but have made some pretty crappy Logos. But again as I said Photoshop is quite nice.
i am used Cubase on the Atari to create the logos ,. i will rate it 3//10,, also i am use photoshops and illustraters.
If you are not designer and do not have the skills to create your own logo using Illustrator/Photoshop, you may want to try some special software like "AAA Logo". Do a google search for it. Basically it contains templates a large clipart database - images of every kind you use to assemble a logo.. Just got it yesterday and still playing with it so I can't give any detailed info yet.
Illustrator for vector art - then photoshop... but best might be a moving logo - use Flash or better still After Effects to create excellent animated logos that convert well to stills or flash.
Photoshop is quite good software .... As I am also learning the designing I'll try Illustrator and after Effects