I've created a newsletter on Letterpop. it was fairly easy, although once I'd uploaded and image and dragged it into my newsletter, I couldn't work out how to delete just the image. I ended up trashing the whole newsletter and starting again.
The free version of letterpop only allows you to upload 25 images - which probably wouldn't be enough in a year - a library newsletter would most likely be monthly which would limit you to 2 or 3 piccies per issue - which isn't many because I would want to illustrate a newsletter with piccies of activities, 3 just wouldn't be enough...
If you didn't have ms word then letterpop would be useful - I think it could replace ms publisher in the newsletter stakes but I didn't find it any easier to use than the newsletter template in word.
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