I use blender for modeling. It's true that it takes time to get used to the interface. I'm still getting used to it. But after sticking with it, I can produce really good results with very little effort. I use the previously mentioned blender to mdl7 exporter. The blender book on character animation mentioned is also very good. I have been working through it for the past two weeks or so and have learned lots. Not to mention all the tutorials that are out on blender.org.

I am testing fragmotion for animation. I like it so far and it's very cheap at only $25. You can find it here...

http://www.fragmosoft.com/

The "trial" allows you to do everything it can do (to the best of my knowledge). Just get used to interruptions. I am going to give it two weeks or so and then make a purchase decision.