Kashmir 3D is a free terrain modeler. It renders landscapes from the world map, and you can also choose from different rendering styles (CPU-intensive): http://www.kashmir3d.com/index-e.html
World Creator v.1.5 is an easy to use free software that comes with 256 Texture Library and 500+ Masks Library to get you started. You can create interior and landscapes for your games (Isometric, Pseudo 3D, 2D Platform, Overhead etc.). And you can make animations with it. http://www.inet2inet.com/Main/Main.htm (Click the second button from the left to get there) http://www.inet2inet.com/InetSoftware/World-Creator/WC1.5_Std_C.asp
Stickman is an animation program for children and amateurs. The demo version is free and lets you render your animation as video file (.avi). http://www.cutoutpro.com/download.html