Im going to post on this again:
Most people here will reccomend whatever they use, its silly and not helpfull. As far as free programs go I would reccomend:
gMax
MayaPLE
Milkshape (not quite free)
If you have a bit of cash instead of wasting it on gamespace/truespace/3d canvas pro.. Get and educational license of either:
3dsmax
lightwave
maya (dont know if this one exists)
These are usually around $150 for a year. Thats pretty cheap and you can use something thats actually stable and well thought out. Educational licenses cant be used commercially but the odds of anyone here doing anything commercial are about 1000 to 1. 2:30 in the morning here and I wish I could have been more concise.