I agree as well...but before I this let me make some things clear.
...other than this probably isn't the best place to post this thread.The Milkshape forums would be the proper place and if for some reason you don't get a response (which is entirely possible.I have been on those forums before) then I would suggest posting threads like these in the 3D Chat forum in the future.That is why it is there...and where I am probably going to move this thread to.
If you have Milkshape you don't need Fragmotion.Fragmotion is for animation and you can already animate your models in Milkshape.
While I recommend Ultimate Unwrap 3D if you can't afford it there is a free program called UV Mapper.You have to export your modles in .obj format out of Milkshape to use it and import them back into Milksape once you are done and export them as an .x file for use in FPSC.UV Mapper is highly recommended.
I also think that Milkshape has an internal UV mapper but since I don't UV map my models in Milkshape I am not sure.
The Gimp is an excellent free texture making/paint program and I use it in conjunction with Texture Maker to do texturing.You can get the demo of Texture Maker from the TGC home page (a link will lead you there).
Other paint programs include Photoshop and Paint Shop Pro.
Moving this to 3D Chat...