An interesting option is the zero-cost flow (in tools) 8) .
1) editing, completly up to you but em@cs for Win/Unix is the best for me, is free and includes VHDL/Verilog menu.
2) Simulation, Models!m XE/Starter 5.6a (or the latest), downloadable from X!l!nx site, it's bloody slow but does the job and it's free.
3) Synthesis, ISE which is free includes XST (X!l!nx Synthesis Tool), not very reliable yet but quite improved in 5.1 sp3.
Also in synthesis if you re targeting @lter - @ devices you get for free Leon@rdo Spectrum from the @lter - @ website, no RTL view but full functionality.
4) Build, ISE - Webpack is free downloadable from X!l!nx supports most of the devices, not all of them (read notes).
5) Download image, Imp@ct for X!l!nx and similar for @lter-@, L@ttice... are generally free included with the front end tool.
It would be interesting to get a free version of S-y-n-pli-fy with reduced functionality but something.
For some small companies which can't afford several licenses this is an interesting flow.
Maestor