Yes you do need additional software. I would suggest anim8tor, it is free, easy to use and the have some good tutorials on there site link:
http://www.anim8or.com/. Then you will need to learn to UV map, you can do that in anim8tor with pictures like I did on this model. But if you want to draw the texture yourself on a image program, you will need to use a UV mapper, link:
http://www.uvmapper.com/. UV mapper is free to. then download paint.net to texture, link:
http://www.getpaint.net/. after you have finished your model and texture export it as .x, you will need a free converter, I don't have a link. the use entity maker found on the fpscreator.com files page to put it in fps creator. link:
http://www.fpscreator.com/downloads.html. All this software is free, hope you have fun learning.
This is my ninth month modeling.