notepad/wordpad/ms word for your translation/editing needs
substation alpha for timing
substation alpha, textsub, possibly notepad for typesetting
virtualdub, textsub, probably xvid and lame for encoding

But with your current level of understanding ... I think you're sorely underestimating the work that goes into "serious" fansubbing. I've seen maybe 3 one-man fansubbing crews, ever, and they were exceptional people with no lives to speak of.