Publisher.

I don't know about 2007, but the Publisher I used didn't add a whole lot of extra code, but it pretty much converted everything to graphics. Not good. I suggest you use an HTML editor to do HTML, not a marginal publishing program. Doing "Raw" html is some work, but eventually after a high learning curve, you get better results.
Arachnophilia is fairly good for a free program. It is very plain.

As for PDF, I use the BullZip PDF printer driver. So you can be in any windows app and 'print' the file to a PDF. Works very well and is free.
http://www.bullzip.com/products/pdf/info.php