There's G Max ( very steep learning curve!!!) which is free and the AD2000 (? a french program) don't know of any others.
If you want to design aircraft it would be worth the investment of $50 to get FSDS 2.24, it's relatively straightforward to use and does a great job. I use it all the time!!!

If you're new to 3D modelling I would have to agree with FSEdge - up to a point. Gmax would be the way to go.

Being used to the conventional FS software & utilities for many years I find Gmax extremely difficult to figure out. You must bear in mind that this is a general 3D modelling application, not specifically intended for any purpose. It's not possible to create anything for the M$ sims without the special plug-ins, either included with FS2002 Pro or posted as official SDKs on the FS2004 (or CFS3) Insider site. Gmax is freeware & the little brother of 3DS Max which, as I understand it, is a very expensive professional application. Unless there's something they're not telling me I could never figure out
a) the advantage of using 3DS Max if all the tutes & plug-ins are based on Gmax. Surely this just makes the whole thing even more difficult.

b) If people complain about spending out $50 on FSDS2 why would they recommend an alternative costing something like $3,500 for 3DS Max? ???
http://estore.discreet.com/dr/v2/ec_MAIN.Entry10?CID=82679&V1=613375&PN=1&SP=100...

I would assume that those recommending 3DS Max for creating FS addons have an older version of the software, are using it illegally or use it for their work, in which case they're familiar with 3D modelling & already know how to use it.

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You can purchase student versions  of 3d max for a few hundred bugs quite easily, at least over here in Germany.
Just sign up for any closing-time course and you are a student.

You can export almsot straight away from Max to FS, no problem.

One of the great features of max6, beside others, are the texture tools, namely render to texture, or the rendering features which allow you to make a high detailed mesh, render it and use it as a texture for a low poly version of your part.
This is for instance neat for gauges and interior textures.

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In answer to your specific question - gmax, because it is officially supported by Microsoft through its gamepack.

ANY modelling program, however, comes with a learning curve, so don't expect to create fantastically detailed models from day one if you don't already have modelling experience.

AD2002 LT is free, but has, in my opinion, a steeper learning curve, and does not take advantage of the latest gamepack enhancements.

I am specifically NOT including FSDS here because of your limitation of "free".

From time to time some graphics magazines put out full versions of full modelling programs (sucha as TrueSpace 3).  However, you are roughly "alone" in creating models for FS with these programs, since most flightsimmers build with gmax, or FSDS.

I have never used any form of modeling program and gave GMAX a shot. I downloaded all of the tutes for it and tried to build the airplane in the tute. I did finally manage to do it but I must have restarted a dozen of times before it finally sank in what they wanted me to do. But I have to admit the house I made was a lot easier.
But I think GMAX is a great tool it just not the easiest to learn with out any other knowledge.
I doubt if I could design my own air craft with GMAX yet There is a lot to learn. I just need to devote some more time to it. If I could find some kind of book on what everything does it might help. But it also might confuse the issue even more.

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Hagar, I didn't take it that you were aiming for an argument on the subject at hand. Sorry if I made it seem this was your intent.

If indeed FS98 through FS2000 are the flight sims being used AD2000 LT would have been the choice at hand. It appears though that A.T.C. Publishing is closed. Game Over it claims. I wonder if Herve uploaded AD2000 to another location?

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I am sure at some point you were one of the few who helped me. For that I offer you a tremendous Thank you. 

FSEdge

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Again my comments weren't directed at you or anyone in particular. Sorry if there was any misunderstanding.

I was merely commenting that the average person finds Gmax extremely difficult to use. Gary later confirmed this. Exporting the project from Gmax to the sim might seem easy enough for the "old hands" but this is also difficult to grasp for many people. The fact that a different Gamepack is required depending on the sim you're creating for complicates things even further. All this takes time to learn & there's such a thing as too much information which can only confuse the issue. IMHO

You don't suddenly become as skilled as Mathias overnight & shouldn't expect to. I respect his opinions as I know how much time he put into that amazing CFS2/FS2002 He 111 in FSDS before converting over to Gmax. (Mat, you might forget now that I was involved in the original project, if only in a small way.) I imagine this involved virtually starting all over again. Learning how to adapt it for CFS3 was another step in the process which very few seem to have mastered even now.

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I'm surprised that Pete didn't point out that the freeware version of AD2000 is posted right here. http://www.simviation.com/fsdesign_aircraft1.htm
I haven't tried it & understand the principles are entirely different to both Gmax & FSDS. Also, I'm told there is very little or no support for it. I'm not sure that AF99 is still available so this would now be the only option for creating FS98 & CFS1 models that I know of. Believe it or not, people still want to create aircraft for these sims - especially CFS1.