InDesign is a fantastic program. There are others, but for value-for-money, I don't think you could do better. I've not heard of any freeware/shareware that could do what you're looking for.
Version 2.00 is about ten years old, so you could have issues with compatibility with your current operating system and whatnot (??).
Personally I wouldn't go for anything earlier than version CS (the CS range are the latest versions). I'm using CS2 at home and it easily does everything you could need — unless you're looking at making your book interactive.
I expect version 2.00 would meet your requirements too, just so long as you could get it up and running.