It really depends on your requirements really - phplist is a good free script, but if you want more personalisation and more features then sugarCRM might be the answer. I have heard good things about constant contact as a hosted solution
In my opinion, QuarkXpress is the good software for creating newsletter. It is used to to produce any kind of layout, from flyers to complex page layouts required by magazines, newspapers, catalogs, and similar printed materials.
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