I'm using MilkShape 3D because unfortunately I haven't had the opportunity to use any professional software packages, and must therefor make, shape and mold everything the hard way meaning that this sword will take a lot longer than it should for anything of its level; not meaning it's difficult, rather that I get distracted easily.
If I had my hands on XSI already I could have finished this in a few hours and had the rest of today to work on the skin, but I will be getting it shortly.
I should also look forward to getting Photoshop (CS 2 for its lower price) sometime in the foreseeable future as well.