I use lithunwrap. It's actually pretty easy to use once you understand what you're doing.
If you have lithunwrap, do this:
Open lithunwrap then click "file", "model", "open"
Find your model and load it.
It might complain about your model having no texture coordinates. If so, simply ignore it. If it complains that your model needs to be triangulated before it can be previewed. Simply click "tools" & "triangulate".
Next, click "Select" & "all".
Then click "Tools", "UV Mapping", "Box".
Viola, you've created a UV map. A basic one, but a UV map none the less.
You can click "File", "UV Map" & "Save", to save off the Bitmap version of the UV map. Then Save the model too (just to be safe) by clicking "File", "Model", "Save". Save it as a .LUM file, that's Lithunwrap's internal format. From there, you can export it to any of the other formats that Lithunwrap can do (which is another reason to keep Lithunwrap around, it's a great file type converter).
Now, open the bitmap you created in whatever image editing software that you wish to use (I use PaintShop Pro) and paint your texture on top of the UV ma you created. Once you're done, you can reload the .LUM version of your model into Lithunwrap. Goto the righthand side of the screen and you'll see a treeview control. It's likely to have three entries, "Groups", "Materials" and "Bones". There should be a "+" sign beside "Materials". Click it and it will expand to show you the material name for your model. Double click that and a small dialog will load. At the bottom of the dialog, you will see a box labelled "Diffuse Map" and in it will be a label that says "Map type:" and a combobox. Click the combo box and make it say "Bitmap" Then click the "Properties" button immediately below the combo. This will load another dialog over the top of the first. Click the "Change" button on that dialog and navigate to the bitmap texture that you painted, then click the "Ok" button to close the dialog. Then click the "Ok" button to close the original dialog. Now click on "Preview", "Show Model" and bask in your textured model goodness... You can rotate the preview screen with the left mouse button. You can zoom in and out with shift and the left mouse button and move the camera's view area around with Ctrl and the left mouse button.
I've heard of Deep UV, I guess I ought to check it out.
When you get to the point that you want to animate your models, I've been playing with FragMotion by Fragmosoft with some level of success...
Intel Pentium 4, 3.4GHz, 1280MB RAM, NVidia Quadro FX3000/256MB, 240GB HD, XP Pro