IMHO, 3dS is the best 3d modeller out there (tho even I'm not willing to shell out the bux for that); it's very powerful, and easy to use (albeit not easy to learn for your first experience with 3d programs ^_~). I've fiddled with Milkshape a little bit, and found it not to be to my liking. Blender is very nice and powerful, but it's also got a bit of a learning curve. Lightwave and 3d Eye were also pretty good (during their heyday)... dunno if they're still around anymore. I've also used Zpaint (I think that's what it's called), which is truly unique, as a 2d/3d painter/modeller hybrid. In the end, tho, I use Bryce (my second 3d modelling program) and 3d Canvas.
Famous Last Words:
...oh, it's only a horde of skeletons, I can take them on single handedly. I'm lvl 20!