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A lot is written around this site. As usual, everybody had it's own opinion. I am not familiar with InDesign, but from what I understand it has some quirks regarding epub generating, which has to be changed afterwards.
You can use Word and if you use styles, it will make things easier. I would advise Liz Castro's book about ePub. Some parts are written for iBooks, but in essence it is a good book which would help you enormously. Personally I use Word and Sigil. If you keep the layout relatively simple, it should pose no problems on any reader.
You will not find many supporters of DRM here. It will cost you a lot of money due to licensing and it can be stripped without real effort. I do not know whether B&N will require you to have DRM available, for your sake I hope not. Anyway, the Nook can read any ePub.
The websites are various. There are many (e-)bookstores available. You could try smashwords, which is used a lot and will allow you to sell DRM-free books. I do not know of give-away books, but you could try to give some away here. There are some very dedicated people here.
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