Hi all; found this surfing around at sourceforge:
Name: SharpConstruct
http://sharp3d.sourceforge.net/media....php/Main_Page
You can actually paint 3D models real time with it, and it's free
Make sure you download all 3 files it says to use it though, and so far it only seems to support .obj and .lwo.. I have win2k and it works, can't say it will with other OS.
Also here is a little texture making tool, free also:
http://www.paurex.com
Cheers