No, free 3D programs aren't up to it. There are some like Anim8or or Blender, but they're hard to use (especially blender) and not as good. If you must use freeware, I recomend Blender, but you'll need alot of patience to learn it...

I use Rhino for modeling and Cinem 4D for animating. Both are available as free trials:

Rhino- http://www.rhino3d.com
Cinema 4D- http://www.maxoncomputer.com

I did this unfinished conyard anim a while back with only Rhino, modeling took 2 hours, animating took FOREVER as I didn't have Cinema 4D at the time (would've taken 30 min with it):

http://www21.brinkster.com/meselfs/anim.zip

Link needs to be copied/pasted.

meselfs himself!