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You can slice websites in Photoshop or IR. IR gives many more options and wil make it so you have less code to write when you export the website. Photoshop does the very basics of slicing, with no abilities to add effects (I think, not 100% sure).
When you go to save it, in Photoshop go to File >> Save for Web and it will save as an html table of images along with the pieces.
I am not sure on IR, but I think it might be Save Optimized As.
I usually make the slices in Photoshop and save for the web, but I never use the generated html, because it is almost always poorely coded.
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