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The page you added is just a subscription page, you still need a folder for your newsletters. I've removed that subscription page and put the subscription form in the sidebar instead.
I've also set up a folder for your news items / newsletters. You can create articles in this folder and send them to your mailing list. If you want to make your newsletter in PDF then you will have to insert it as an attachment as you have guessed. PDF is a good format for documents, but FEWER people will read the newsletter because of the extra step required to download the PDF. You might try experimenting with making it an ordinary article, or if you do use PDF, make sure you convince your readers that they really want to download the file :)
I am interested in getting together a newsletter for my mailing list, this hopefully will be sent out monthly. My question is: What is the best way of doing this? I have set up a section for newsletters following the advice you sent this month for mailing lists/subscriptions and was thinking of attaching the newsletters to that, is this the way to go? Thanks.