I am a bit confused by some of these replies, If you have used POSER in any shape or form you will realise that it is a character manipulator NOT a modeller.
You create the models in 3DS MAX or Lightwave then import into POSER to manipulate, animate, light etc.
This product is good at what it does but hey you do need to know how to use it and understand its strengths and weaknesses.
Milkshape is a good moddeler for low poly models but the industry is moving forward with very high definition models. Just look at the UNREAL 3 engine to see what I mean.
Games with low poly models, and game creators like 3D GAMESTUDIO always look flat, angular and lack lustre.
I believe if you create excellent good looking models in a high poly modeller and then animate using, say poser 5.
Then save as TGA or BMP, import into Sprite edit and then into the WME engine you would be suprised at the results. I was, and am using this method for all my NPC`s for my project LIMBO of the LOST.