MapZone : Yes, it's FREE
Man, I've downloaded this tool and I can honestly say, it's amazing at what it does. It's photo realistic and procdeural so the texture size can get huge without loss of quality.
Have a look. I'm stunned.
Give it a try.
Right, it's been a while. A fair few tutorials have since come out and I thought you'd be interested
MapZoneTutorials
-Normalmap Basic Part 1
-Normalmap Basic Part 2
-Basics in Mapzone
-Filestore in Mapzone
-Create a Wall Part 1
-Create a Wall Part 2
-Texturing a 3D Object in MaPZone
MapZoneEditor
-How to create an Ivy leaf texture?
-How to create a Lava stream material
-How to create a wood texture?
-How to make a bloody checker texture?
-How to create a metal floor tile?
-How to make a rusty texture?
-How to make a texture from scratch?