@BastovBros:
1.- Sometimes I use google images to find a base texture (like the scales for the Naga or the fur for the Hellhound) and then I mix them with hand painted textures using various Layer blending effect.
2.- I use 3dsmax8, Photoshop CS3 and a sexy Wacom Intuos 3 tablet
3.- Depends of the complexity of the model and the amount of animations, but the range is about 1 week to 1 month.
@Angelina: I work with 3dsmax8 and Photoshop CS2
Thanks!