Blender is a free and open source 3D animation suite. It supports the entirety of the 3D pipeline—modeling, rigging, animation, simulation, rendering, compositing and motion tracking, even video editing and game creation.
I've created a page in the Wiki, for how to set up Blender to Import and Export to Torchlight. It's just a rough draft, but it should explain how for those interested.
Wiki page: [wiki]torchlight_to_blender_import_export[/wiki]