ok, just my 2 cents. its more expensive than milkshape and unwrap 3d, but it kicks ass for what it does, and I don't see many people mention it: Cinema 4d and Body Paint 3D. Cinema 4D is a rockin modeling program, that can make kickass high quality - commercial quality - models or low poly gaming type models. Costs around $250. US, and they sell a full student version. Body Paint is really the best unwrapping I have come across. You can unwrap your models in flat, sphere, cylindical, etc. You can break the texture apart by selecting faces. It has a magnet tool so you can move vertex by vertex (or several at a time) and lay out your unwrapped map as needed. If you adjust your model after unwrapping the texture map will update. And... you can paint directly onto the model or texture - I do this to add highlights then use photoshop with overlay mode layers... I have only been using it a little while, and its an awesome program!!! But you need C4D to use Bodypaint, since it only opens C4D, but then you can export to Direct X! Perfect for DBP!!
Here's a screenie of the axe I made yesterday. Needs better texture, but I only spent a few min in photoshop with it...
Happy game making!!!
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