Do you do them in Photoshop? Code them for the browser? A diiferent method?

Piece of paper > photoshop [design not text] > Dreamweaver etc.
I don't do a pixel perfect layouts as some do [and code the style sheets etc to work in each browser with "fixes"], I leave room in the layout to take into account the bugs in browsers.

1) I draft on paper. Determine how things will work/function.
2) Design composed in Photoshop, save PDF or JPG. Or in some cases, I draft directly in Dreamweaver to show functionality to client. It depends on the type of site and immediate needs. Most of the time, I've used Photoshop with layers, and make edits from it.

Sounds like there is a fairly strong consensus:

1a) For new sites, start on paper (or meeting room dry-erase board). Then move to Photoshop.

1b) For new pages in existing sites, start in either Photoshop or Dreamweaver/VisualStudio.

2) Start a page or two in Dreamweaver, to get HTML/CSS set in stone.

3) Move that into VisualStudio to convert navigation, headers, footers, and other common elements into .NET UserControls, and set up any back-end work.

4) After that, it's whatever works best... Sometimes for new pages we go back to Dreamweaver, other times we stay right inside VisualStudio.

Same say many;

1) Paper

2) Photoshop (though unlike Richard i do pixel perfect and css hacks for IE/Safari) ^^

3) Dreamweaver

* Layers and folders in PS to keep everythign neat.