VSD is not very search engine friendly. I found out after naming all my images according to my keywords for SEO purposes, that VSD actually CHANGES all the files names from "keyword1.jpg" and "keyword2.jpg" to "Img_1.jpg" and "image_2.jpg".
But there IS a work-around. It seems that if you save your files as .PNG then VSD leaves the file names alone...
Also, whenever you apply Advanced Text effects to your text (Shadow etc) VSD saves that text as an IMAGE. This means Google's spiders can't crawl it!
There are a few advantages to this, however. For example, if you want to use a crazy font that you know no one's going to have on their computer, you can give it a shadow and then it becomes an image! 100% browser compatibility!
Here is an example:
http://www.disneysubmarines.com/
The Walt Disney font above the video at the top of the page, no WAY anyone's got that on their computer, but it works in all browsers bc I added a shadow. If you don't WANT a shadow, just set the shadow to "zero" or "one" so it's barely noticeable.
VSD also is not search engine friendly because they do not support dashes in URLs. The dashes in between words in the URL is what allows Google to tell words apart. Lets say your site is about, oh, I dunno the Finding Nemo Submarine Voyage at Disneyland. If you made a page URL like "www.disneysubmarines.com/finding-nemo-disneyland.html" then Google would recognize the keywords "finding nemo" and "disneyland" in your url = good for search rank! But VSD will only allow you to make your url "www.disneysubmarines.com/findingnemodisneyland.html" = not good for SEO (doesn't HURT it, just doesn't help it).
A shorter answer to your question is this: YES. A hand coded site will ALWAYS have better advantage simply because you have more CONTROL, and can code your images however you want. ALL wysiwygs have limitations, although VSD is def one of the better one's out there.
If you really want a high site rank get some good quality non-reciprocal links from companies like TNX.net or textlinkbrokers.com. Textlinkbrokers is more expensive than TNX, but in the long run they are far less likely to end up getting penalized by Google for "selling" text links. If you visit their site you will understand why.
Or just email webmasters of high PR sites that have similar keywords as your and ask to do link swap.
Chad Spillars
"Look I finally made myself a signature!"