For quick boards, I use toner transfer (print the artwork on an old magazine with a laser printer, and use a laminator to fuse it to the board). You can still get FeCl etchant at Radio Shack. Many people use muritatic acid/hydrogen peroxide as an etchant.
I use KiCAD for layout; it's free, reasonably easy to use, and generates Gerber files so I can send them to any board house.
Honestly, it's hard to beat ExpressPCB on cost for fast turnaround if you can fit your design in their miniboard service. If I can wait two weeks, I usually use Itead Studio (I believe Seeed Studio uses the same board house). While I haven't used it, the service over at DorkbotPDX has gotten very good praise on line.
For volume, I have used Itead, Gold Phoenix, PCBCart, and PCBGeek.
/mike