I personally hate prerendered Games cause you are so limited, simply cannot move around like in a FPS game.
I'd use a high end renderer, 3D Studio Max, Maya or Lightwave. On the NoBudet side you may use Blender, tho it's not so userfriendly any you maybe better take some time to find some good tutorials first.
If you have problems with importing the Milkshape output, simply use UltimateUnwrap3D, this may solve all your format problems. Don't allow this format issue to influence your choice of a nice renderer.
I'd use a high end renderer, 3D Studio Max, Maya or Lightwave. On the NoBudet side you may use Blender, tho it's not so userfriendly any you maybe better take some time to find some good tutorials first.
If you have problems with importing the Milkshape output, simply use UltimateUnwrap3D, this may solve all your format problems. Don't allow this format issue to influence your choice of a nice renderer.