Im wondering how I can properly texture a 3D model. (Using 3D max)

Teh way I do it now:
1. Render the model from top (or side view)
2. Paste the image in photoshop
3. Trying to make a nice image.
4. Stick teh image back on the 3D model useing UV Unwrap...

Is there a better way? It mostly looks like crap with round models and my textures are left with unused spaces.
So how could I create some skin like this, but with less black spaces...: