PLEASE Help with Newsletter Page Setup

Hello all,
I am working on trying to re-create a newsletter using InDesign for a client who had previously done all "design" in Microsoft Word.
It's admittedly been awhile since I've done much page layout or work with imposition, and my brain is completely cramping when trying to figure out the correct way to set things up first of all, and then to send the finished file to the print vendor for output.
Here's what I know...
The newsletter is to be printed two-up (according to printer) on 17"x22" sheets of paper, with printing on both sides.
When folded, and with all contained pages stapled together along the fold, each page of the finished newsletter is to be a full 8.5"x11" in size.
Currently, I am working within a Document Setup of "Facing Pages" at 8.5"x11" in size, but have a feeling that either this is: a.) not correct, or b.) not the most efficient way to get what I'm looking for; possibly it's both!
I would be EXTREMELY grateful for any insight, help, and guidance you're willing and able to provide me with.
Many thanks, in advance!

Sorry, Bob.
I'm trying my best to be clear, but simaltaneously include as much information as possible. Perhaps my wording is what's fogging things up. I'll try to re-hash:
The FINISHED SIZE of the newsletter is 8.5"x11". To you, the reader, this 8.5"x11" would be the size of each page.
The PAPER SIZE of the newsletter is 17"x22". The printer will be printing two-sided (front and back) and two-up on each 17"x22" sheet of paper.
Once printed, each 17"x22" sheet will be folded in half to essentially created 4 readable newsletter pages at a size of 8.5"x11". The folded sheets are fit inside of each other in the correct order and stapled along the fold into sort of a booklet.
Hopefully this helps.
Again, I am essentially looking for help regarding two separate questions:
What Document Setup will I want to work in as the designer?
What steps do I need to take once my layout is finished to get the printer a two-up imposition in PDF format that will achieve all of the above? This is what he has asked for.
Thanks again!

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