One of the best free modeling programs out there is Wings 3D.
http://www.wings3d.com/
Simple to use, and does the job. Perfect for any budding modeler out there.
I've personally used Wings, Gmax, Anim8or, 3DS Max 5, and Silo. For straight modeling, Silo is my favorite. Not free but pretty cheap (around $109). No animation capabilities in that app though, but the modeling features are well worth it.