Welcome to the party.
HTML coding is definitely NOT obsolete with ASP.NET. I can only speak for
myself, but the only HTML work I do is to create the layout of aspx pages,
custom page templates, and control templates. The DataList Web Server
control is an example of a control for which you (can) define raw HTML
templates. Even with these server-side controls that can inject lots of HTML
into the rendered page for you - you will sometimes have to provide it with
an HTML template in order to get the look you want.
Separately, don't throw away your favorite HTML editor. VS.NET 2003 is
notorious for trashing your clean HTML. That is, if you create a nice clean
HTML page layout in Notepad or DreamWeaver, and then open that page in
Visual Studio, odds are pretty good that your clean HTML will be destroyed
as VS.NET 2003 does a complete rewrite for you. And it's not simply
recreating your original layout with different HTML; you get a completely
new layout as well. The good news here is that the next version of Visual
Studion is supposedly going to solve this problem. Until then, many of us
use Dreamweaver in conjunction with VS.NET 2003 - using DW for all HTML/page
layout work and site management tasks (uploading files, etc), and switch
over to VS.NET for all coding, debugging, and testing.
Good Luck!
-GH