Where to start?

You can continue to use Front Page/Dreamweaver to make your template if you wish, and insert the necessary php functions afterwards. However, most people here would prefer you to adapt an existing WP template. Front Page generates sucky code. ??

Are you using 1.2.2 or a beta version? Template handling is different for each and that will determine the advice you are given.

I use Dreamweaver and TopStyle Pro myself.
https://codex.www.ads-software.com/Blog_Design_and_Layout

I’m using 1.2.2
If you visit the site, you will notice all the titles are grayed, as is the calendar. Want to change that.
Also, would prefer to go to a three-column layout with either a background image or background color.

Here are some pre-made WP 3 column layouts. You can probably tweak them to include a background image, using the resources that NuclearMoose provided:
https://www.diki.or.id/grass/
https://www.alexking.org/software/wordpress/styles/sample.php?wpstyle=dots (download: https://www.alexking.org/blog/2004/03/31/3-column-layout-for-wordpress/ )