Blender has always been a decent package, somewhat quirky accoring to many, but it is in fact quite capable and features most of the tools expected for modeling, texturing, rendering and animation. And it's definitely the application of choice in the realms of freeware CG solutions.
The big problem putting new users off has been the lack of good documentation. This problem seems to be solved now, as the new 560 page manual starts shipping around christmas.
Head over to their headquarters at blender.org (http://www.blender.org) and read all about it, or check the details and pre-order offer in the shop (http://www.blender3d.org/e-shop/product_info.php?products_id=79)