Blender is good (in conjunction with vent's MDL7 exporter), Milkshape is adequate but dated, fragMotion is the way to go. The developer listens to his users, so if you suggest something he'll listen (in most cases). It's specialty is animation and it will export (natively) to every version of 3DGS MDL format including vertex and bones (MDL7 format of course). He's also awaiting the libraries to the newer MDL7 versions, so when that arrives, he'll implement it. I'll be sure to suggest he makes it MDL7 A7 (provided Conitec doesn't change it to MDL8) for compatibility purposes. It will also export to X and eventually FBX (which A7's MED will export and will allow for up to 4 bones per vertex in your rigs):
Anyway, it's $20, constantly in development, and probably the best indie targeted animation program on the market:
http://www.fragmosoft.com/Quote:
Is there perhaps something within 3DGS itself that allows you to bone and animate meshes?
Our own model editor MED will allow this (and the A7 version has many feature enhancements...see beta page at top of page), but if you have an aversion to Milkshape, you probably have one to MED, as well. 
