I've been using Wings3d to model all of my clothing. It's free - which is perfect for anyone's budget.

I recently invested in Z-Brush 2, and I have to say it's the best money I've spent on any software in a long time. At a fraction of the cost of Max or Maya, or simlar programs, and with the previews of its features in the coming 2.5 version, it looks like clothing modeling - for both personal use and redistribution - will be a breeze, from modeling to texturing. Plus, all conforming clothes rigging can be done right inside of poser.

~E.D.