TrueSpace

trueSpace is a 3D computer graphics program developed by Caligari on the Windows platform. Its intuitive interface makes it easy for anyone to create 3D objects and scenes. This program also gives you the capability to create professional grade visualizations and animations with realistic lighting and organic modelling. Its file format COB is used to store a three dimensional model, which can be embedded in Active Worlds.

There is also a free version of trueSpace 3.2 available for download (perfectly legalized) at Caligari's website. Link: Free trueSpace 3.2