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Sedonia, I've never found a good WYSIWYG editor that wasn't at least a couple of hundred dollars -- like Pagemill. But with your educational discount, couldn't upgrading Pagemill be affordable?
I've used lots of free/cheap editors, but they're not much better than just writing out the html in a word processor, really.
I sympathise, though. I still have older versions of some major software that I have to run in the classic environment, and it's a massive pain. I'm launching OS 9 almost daily, but it would cost me $2000 to upgrade the programs I use! Maddening. I'm afraid to upgrade my Mac OS (I'm at 10.2.8) because I fear it'll get even worse.
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