Right now I'm experimenting with using trueSpace 3 (free) for modeling, then Ultimate Unwrap3D for texturing and conversion to a Blitz-usable format. I've also messed with Blender (also free), which is pretty cool once you get used to the interface.
Gotta check out TGD's suggestions. I've never heard of a couple of them.
Gotta check out TGD's suggestions. I've never heard of a couple of them.