I read an article on independent video game designers recently and they gave some links to FREE stuff ya'll might wanna check out:

3d modeling & animation:
Gmax
http:\\www.discreet.com/products/gmax

Game engine:
Quake II GNU general public licence innovation without tools
http:\\idsoftware.com

Compiler:
GCC
http:\\www.gcc.gnu.org

(all of the above in one package, still free...)
Blender
http:\\blender3d.org

image editing:
The GIMP
http:\\www.gimp.org

I make no disclaimers about these products as to how they work, why they were named what they were named or any other thing as that. I just am passing on information of FREE stuff to people who appreciate stuff (especially FREE stuff) and if you happened to read the same atricle as me, then you know I didn't include the NOT FREE stuff that they listed. But if even 1 person uses these to make a game, then its good stuff...

SilentThief

as an add-on-dum, blender doesn't have the quake engine, what I meant was that blender is a modeler,compiler, and engine all in one...

i just put gmax on my machine like an hour ago...lol
as for gimp, i've heard lots of good things, but never used it.
and blender...well, i tried to use it. it had the highest learning curve of any graphics/modelling software i've ever tried, and i just gave up before i could figure out if it was cool or not. :D

-manikus