Now if you go with lightwave you also need to visit "greenbriar studio" at
http://www.greenbriarstudio.com/3D/GameLWMod.htm to get a decent suite of plugins
(unless Frank knows where to get a free mdl exporter), if they cannot be afforded then go with blender, yes I am a blender advocate, but I live in lightwave(waiting patiently for 9.2).