Adobe Indesign is a fantastic program. I currently use the latest version CS4. You should provide the printer with print ready PDFs with bleed and trims. I have been in design and print now for more than 34 years and I know it inside out.
A PSD is a photoshop pixel file and is NOT recommended for magazines. Neither is JPG or similar. However, you can 'place' native PSD (Photoshop) files and AI (Illustrator) files directly in place in Indesign as images or adverts. All images placed in Indesign must be 300ppi.
A PDF is a portable document file. Each printer has different specifications for final PDFs. For magazine work it should all be in CMYK not RGB. Bleed varies from 3mm to 5mm plus trim marks. Always ask the printer what version specs of PDF they expect. They will paginate (put all the single pages into the layout they require) at their end.
Apart from that, everything else can be done in Indesign and exported to print PDF embedding all fonts and images. It's wonderful for magazines, books and ebooks.
Adobe Indesign is not something you can learn in 5 mins - you can get great training by subscribing to
www.lynda.com plus more at
www.adobe.com.au
ALSO NOTE: printers expect commercial PDFs when images and text are all embedded correctly to be quite large in file size. Low res web PDFs are NOT for commercial printing.
Like any great tools - it's not the tool, it's the knowledge you have of the tool. The more knowledge you have the more you get out of it.
And check all details such as spelling, grammar, phone numbers and web addresses carefully. It's amazing how many can go to print with incorrect details.