Hi Guys, when I wanted to start making my own games and mods, it literally took me months to find FREE no strings attached alternatives to what was available in engines, animation and artwork. So I have decided to make it easy on you (the wannabe game designer) and post here what I have found. Most stuff is pretty basic I know but it does the job and does it well.
A good place to start is
Gamedev.net
First the 3D Game engines:
Irrlicht Engine Genesis3D realityfactory Scrolling Game Development Kit <2d game editor/designer
And of course there is the source of Quake, Quake2 and quake3A 1.27g game source at idsoftware
Each of the above sites contains tutorials for beginners. 
2D & 3D Software
anim8or
Blender
gameSpace Light
Gmax < Has limitations on file saving but easily bypassed with a few export scripts.
3D Canvas
OpenFX K-3D The GIMP Ultimate Paint ImageForge Project Dogwaffle Complete list here Sound effects and music Music Software
Oh nearly forgot, For compiling
Dev-C++ is the go, I use it over M$ Visual C++
Hope this info helps you on your way, There is a lot more but I can't do all the work for you

. If anyone knows of more preferrably FREE stuff please add to this list thanks.