Flash users be warned!
Website Builder v.7 (from GoDaddy) does NOT support Flash. You can't view or get to your file manager to upload or edit pages. It does however supply easy plug-ins and design aspects for the novice user.
Weigh your options carefully before choosing between "hosting" and "website builder" because the site can't switch your files back and forth. You'll be starting over!
Bottom line: If you need a quick website with a professional looking layout, "website builder" is great. If you're a little more evolved and capable of designing and developing with your own code, choose "hosting".