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It DOES have a character generator (with certain limitations), but if you want your own unique tiles, battlers, pictures, panoramas, or music, then you're going to have to make them yourself with another program, import what someone else has already made, or get someone else to help you.
Don't worry, though. I'm sure the artists around here will come along to tell you more about doing THEIR side of things.
Also note that there are a lot of great artists in the community ( http://forums.rpgmakerweb.com/ ) who share free resources that you can use to help customize your game. :)
Editing/everything else art related - Photoshop/GIMP
Music - FL Studio + Audacity
Yes, Paint .NET is also a good choice.
Everything you need for RPG maker.