"2.  Crap you mean photoshop won't be good enough to paint the skin in?"

most textures are created in Photoshop or its equivalent.

its just that for figure texturing you will eventually run into body seams, which youll have a hard time texturing seamlessly without some form of projection painting program.

the recent versions of Photoshop have some limited 3D painting capabilities.

as hborre mentioned, UVMapper is another staple - and the standard version is free.