I've just gone through this and I would say, get an architect unless its a really basic job. We are about to do an extension and on various peoples' advice we didn't use an architect. We were scared by their fees (10-14% of build cost for an RIAI member arch and you need then to be RIAI or you don't know what you're getting). So we have spent well over a year trying to get this thing going ourselves. Now, if you are very very knowledgeable about building and very confident in your own ability to make design decisions you could try doing it yourself. However, we have found it to be a real pain trying to decide how best to use our space and we're always second guessing ourselves cos we don't trust our judgement enough to be sure we're not missing out on a better design.
With regard to what an architect will do, I suppose it depends on what you decide with them but the norm is for them to provide design ideas, draw it up, handle the planning application for you if applicable(you need help with this as any mistake will cause delays), look at builders' quotes and maybe suggest builders, and then supervise the build (I think this is essential to keep builders on track unless you can be there yourself and check up on them) and certify at the end that it meets building regulations and planning laws - this is needed for future sale, mortgage etc. Part of the design service may include advice on finish (flooring, doors, windows etc.) which once again, you may decide you can figure out yourself but having someone who knows the options and pros and cons is a real help.
All in all, I think we would have saved ourselves a ton of hassle and we know for a fact now that we could have gotten more out of the space ITO design if we'd hired an architect. They also help you make sure you're not being ripped off or given shoddy goods by the builder. I know people who've done it on their own but they have a background in building and know their stuff. Hope that helps.