ADMRL,
I posted some suggestions to free/cheap modelling resources on the SSC BB in the FF forums (we don't see you post enough there

).
What do folks think of Blender?
How about gMAX (i know it's kinda crippled for saving as anything other than it's format, but does it have good rendering capabilities?)?
I use Milkshape quite a bit for manipulating low poly models for use in games, it's like 20 bucks, the other two are free. There is also Strata3D (which I have only tinkered with), Truespace1, and a couple of decent terrain/landscape freebies out there (terragen comes to mind).