nanowrimo_lj | Programs and file formatting

Just wondering what program everyone is using. I downloaded yWriter last month and though it's still a bit overwhelming, I'm forcing myself to use it for organizing, and I think it'll come in really handy when I'm halfway through my novel and can't remember what this guy's last name is or what color hair that woman has. But, I'm doing my actual writing in Word 07. I tried Q10, and may use it again for timing word wars, but the lack of ability to format the text is a real downer.

Also, how are you handling file formatting? Meaning, are you writing in a single document, from start to finish? Are you saving a new file for each chapter? Scene? Day's work? Here's what I'm doing: I start a new file for each day's progress, and add it to a master file at the end of a writing session. I also add each day's progress scene by scene to yWriter, as well as any new characters that have popped up.