Blender ftw!
This was my 1st tutorial video which made me addicted: (for modeling the mesh)
http://cgcookie.com/blender/2010/12/22/ ... -building/
Once you get confident with modelling try;
For painting the mesh's texture:
https://www.youtube.com/watch?v=POMYuJGrzqk
And then rigging for animation:
https://www.youtube.com/watch?v=Txl1X2WVX_E
(@ 8:58 skip to 10:29, ignore the 'generate rig' process. Generated rigs create many un-wanted bones.
Skip to 7:22, and basically just use the 'Armature' instead. This also makes the model usable in UDK)
The rig is a bit harder to use, and the hip bone is the new 'root'. The easiest way to move it is by using the location x,y,z slider controls.
For animals
https://www.youtube.com/watch?v=CQ1jw7zvuCI
Then animation:
https://www.youtube.com/watch?v=Gb152Qncn2s
Ahh /end ramble.