I don't know of any freeware that will do this, but Maxon BodyPaint 3D will do it. I have it and it's a great product... well worth the money. Here's a link:

http://www.maxon.net/pages/products/bodypaint3d/bodypaint3d_e.html

You could try out Tattoo.

It's available for free (non-commercial use) here: http://www.terabit-software.co.uk/

Kyle_W_:

I don't know of any freeware that will do this, but Maxon BodyPaint 3D will do it. I have it and it's a great product... well worth the money. Here's a link:

http://www.maxon.net/pages/products/bodypaint3d/bodypaint3d_e.html

Bodypaint is horrible and out of date. (edit: this is of course, my opinion - no offense to those who like it)

www.pixologic.com

-pi

Deep Paint 3D / Deep UV

not for free but they have a Free Trial :)(http://www.righthemisphere.com/support/downloads/download.php)

http://www.righthemisphere.com/products/dp3d/Deep3D_UV/index.html

"Extend the use of high impact 3D into non-engineering departments

• Easy to use tools for mapping and painting reduce time to create realistic graphics
• Improve quality of film, video or interactive entertainment products

Right Hemisphere's award winning Deep Paint 3D delivers an intuitive, easy to use tool to paint and texture 3D models interactively in 3D.

With Deep Paint 3D you can:

• Easily paint and texture 2D and 3D models
• Use stand alone, or integrate workflows with plug-in support for existing DCC
  authoring applications and tools

Designed for the creative artist, Deep Paint 3D is the leading painting and texturing solution used by film studios, broadcast, and interactive entertainment companies." (www.righthemisphere.com, 2007)

I recommend using Blender, because it’s free, and will do just about anything for as modeling.

Also I’m going to recommend using Gimp for photo, and image editing task, that is also free.

Here is the download order I used to get my models into XNA.

#1- Python     Free…(Prerequisite for blender, without it some features want be available)   

#2-Blender    Free

#3-Gimp       Free

If it’s free, and it works, why pay for it.