Right now I'm messing around with it, but is there much out there that is better and at the same time free. My models are all going to stay around 1200polys and at the same time I'm going to be working with a few people used to working with Maya and other high end tools.
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XSI is a graet package,- but I am somewhat doubt that it has all the export/ import support oter famous packages for gamedev have. Perhaps you need to run some xtra tools to get it into the format you need.
Milkshape (shareware available) seems to have an impressive list of supported export and import file formats- maybe give it a try as well.
they also hint to it and there is md3 import/export plugin
http://ufoai.ninex.info/wiki/index.php/Modelling/Wings3D
@ ThunderSnake : your best bet is Blender as it's got the most fully featured MD3 import/export scripts now, mainly down to the extended work the guys on the Open Arena project have put into it.
I've got some legacy info on my tools page here, but you'll be directed to the AO wiki anyway.
Gmax is far out of date, and even buggier than current versions of Max.