Decent typesetting
PageMaker's my personal favorite. It has a steep learning curve, though it's not as steep as Quark Express, which is the other standard professional page layout application.
You can find decent typesetting on the web, but you really have to know what you're doing, so probably that's not a good option for you at this stage.
The best way to find a good cheap typesetter is to ask someone who buys typesetting. If your printer doesn't set type, ask him who does. Ask production outfits like WindHaven and Swordsmith.
Just to get this clear: are you talking about processing electronic text, or re-keyboarding a hardcopy manuscript? It makes a big difference.
If you have electronic text and want to turn it into an informal but readable advance copy, directions follow. They assume you use Microsoft Word. If you use some other word processing application, adjust accordingly. The underlying principles are the same.
1. Turn on the option that turns plain quotes into right-hand and left-hand directional quotes. Then do a search-and-replace in which you replace double quotes with double quotes and single quotes with single quotes. Word will automatically reformat all your quotation marks.
2. Turn all instances of double dashes -- like this -- into proper em-dashes with no space on either side of them. An em-dash is also sometimes known as a "long dash." Taking the spaces out to either side of them will not be correct in all instances, but it'll be correct in most instances, and it's better than having raw double dashes in the text.
3. Turn three-dots-in-a-row ellipses into proper ellipses. In cases where there are four dots in a row, the first dot is a period and stays a period, and the three dots following it are replaced.
4. Do a search-and-replace to remove all instances of double spaces. I don't care what anybody's typing teacher told them; double spaces don't belong in proportionally-spaced justified text.
5. If you have at any point typed words all-caps for emphasis, replace them with small caps. Full-size caps look okay on a manuscript page, but they're disproportionately huge on a typeset page, look bad, and are hard to read. Note: You're allowed to use a full-size cap if one of your small-caps words would normally start with a capital letter.
6. Most word processing programs have a default paragraph indentation that's two or three times too big for typeset text. Check yours against a professionally typeset book and correct as needed.
7. Whatever you do, don't set typeset single-spaced text the full width of a letter-size page. Your eye can't follow a line that long. It makes your writing harder to read. If you're going to use 8-1/2" x 11" paper, use a two-column format.
7.5 Very narrow columns are also hard to read. If you're tempted to use them: Don't.
8. After you format, justify, and spellcheck your text, go through and look for lines with unnaturally wide spacing between words. This is also hard to read. Try to snug them up by breaking -- that is, hyphenating -- an adjacent word. Break words where the dictionary breaks them into syllables.
8.5 Don't get carried away. You're just trying to avoid grossly mis-spaced type. One wordbreak is fine. Having two of them close together impedes readability. Three is excessive. Three in a row is called a ladder, and it's an error. Don't commit it.
9. Word has an automatic hyphenation feature that'll do your wordbreaks for you. I never, ever use it. Go for manual hyphenation. Word processors don't know as much about language as you do.
10. Use a decent serif typeface. You may not set body text in sanserif type. Palatino is good. So are Garamond and Galliard. Times is okay, but I think it looks pinched and crabbed. Useful tip: If you want your book to take up fewer pages, set it in Times. If you want it to take up more, try New Century Schoolbook.
11. Ten-point type is good. It's not wastefully big, but almost everyone can read it.
12. Turn off the drag-and-drop feature. Bad things happen to books in its vicinity.
13. If you want to get fancy, have your name at the top of every left-hand page, and the title of your book at the top of every right-hand page. Put the page numbers at the bottom. If you want to save a couple of lines per page, you can put the page numbers at the top, up with the title and your name. Tip: If you're talking to someone in production, the title and author name at the top are called running heads, and the page number is called the folio.
14. You can set up your chapters so they always start on a right-hand page, or so they start on either right-hand or left-hand pages; or you can leave some space and start a new chapter on the same page where the previous one ended. However, there are two things you cannot do. When you're running-in chapters, you can't start a new chapter if there's so little room that you only get the chapter head or the chapter head plus one or two lines of text at the bottom of a page. I opine that four lines of text are the minimum. Opinions vary. The other thing you may not do -- and this is something you may not do under any circumstances -- is leave a right-hand page blank. Blank left-hand pages are okay, but a blank right-hand page looks like an error. (Obviously, you can have blank right-hand pages at the end of the book. That's different.)
15. If you're going to bind your pages, leave a decent gutter.
16. You need a title page. It will have the title of your book, followed by your name. You're allowed to use a somewhat larger typesize, and if you wish, a reasonably chaste display face. Don't get fancy. This is an advance copy, not a book design. You want it to say, "Hello, I'm someone who knows this is just an advance copy."
17. On the back of your title page, if you're duplicating your pages back-to-back), or immediately following your title page if you're doing one-sided printing, will be your copyright page. On it, you will say:
Copyright (c) [date] by [name].
All rights reserved.
Some distance below that, you will neatly print your name and address. The copyright page will be in the same plain typeface you used for the text of the book. You will not dress it up. You will not add any bits of funny business. Why? Because nothing could possibly look more amateurish.
18. Dedications, acknowledgements, and other optional frontmatter doesn't belong in an advance reading copy. A table of contents is allowable, but is certainly not required.
19. There should be no marketing copy on an advance manuscript. If you want to say something of that sort, it goes in an accompanying letter.
20. When you've printed out the final version of your pages, stop. Have someone else look over them. Ideally, have someone else read them. Don't immediately have them duplicated. No matter how careful you are, bad things happen. Trust me on that one.