DwC it's ok to nest divs. Like LadynRed mentioned above layers is the old Netscpe reference that DreamWeaver seems to hold onto. Divs is really the proper term to use and will be understood more for what they are.
It is ok to nest them though. Of course nesting can get confusing sometimes, but there is nothing wrong with it at all.
I looked at the source of your draft page and the way you structured the html looks good to me. Pretty much how I would do it. I'll often create a div for a major page element like my content and then inside that div have all my paragraphs and images and whatever else needs to be considered content. That's not nesting divs though. Nesting would be having one div inside another div which I'll also do often.
I may for example have a div set up for the entire page and then inside that page div have divs for a header and footer and one for the menu and the content. The basic structure might look like:
Code:
<div id="page">
<div id="header"></div>
<div id="navigation"></div>
<div id="content"></div>
<div id="footer"></div>
</div>
I then might have further divs inside of each of those divs should I need them. It depends on the design really.
One suggestion I do have is to give your ids and classes more meaningful names. It's difficult to know what layer34 corresponds to. It will be especially hard a few months from now when you come back to make a change to the site. It's much better to use more meaningful names like header and footer. If you stay consistent across sites it becomes easy to go back to one and quickly understand what part of the page your code relates to.
Overall though it looks like you're on the right track. Your code looks like it's organized well from what I saw. Getting this css thing down will take some time and sometimes the progress will seem slow, but if you keep at it you'll be amazed at how much easier it gets with each new thing you learn.
Selena -- Definitely start your own thread. Asking your questions in someone else's thread is generally frowned upon though it does happen and if the questions are related enough it's often ok.
Your question is very broad though and not one that can be easily answered. It really would be impossible to explain how to code a website in a single thread. My suggestion would be to start with the tutorials at
W3Schools. Once you have a better understanding of how to code web pages it will be easier to help you make that code search engine friendly. We all need to learn to walk before we can run.