I just figured that I'd add a little something to your great response Chuck.
2) Tripods are a must for that "tack" sharp photo that you want in my opinion. Just be aware that if you are using the tripod the Vibration Reduction functions can sometimes introduce shake to the photo. For normal use this isn't a problem but be warned that if you are using a tripod to get a nice tight close up shot of carvings or fine detail that you really should turn it off when using a tripod.
4) Another possibility is a softbox light setup too. It will let you get a nice diffused light source for softer shadows, and unless you wan't truly "professional" shots most people are fine with the sets you can get at reasonable prices off of Amazon.
5) If you have the software capability the absolute best way to set your white balance is to actually get a pure white card and set a custom white balance for the series of photos. If you place the card in front of your items and photograph it you can use it to set your white balance. Software wise the methods will be different but as a generality when setting custom white balance in the most simple form you are telling the program what in your picture is pure white and it corrects the scene's light color. After selecting this you can apply that correction value to pictures taken at the same time/light setup/scene.
6)Don't forget that Gimp offers the similar if not the same power as Photoshop. Be warned of the learning curve however.
7)An addendum to the resolution size that Chuck pointed out is to also be aware of your ISO settings. The higher this is set the more noise you get in the picture. Noise removal can only go so far on the software side before you start to lose some serious image quality.
10) Digital zoom is a big no-no if you want quality photos. One never needs more zoom unless working with a macro shot. Maintain photo quality by positioning the camera closer. If getting closer sacrifices your "ideal" perspective of your product then fall back to optical zoom.
11) For photo albums a great option that also offers you the ability to do almost all of the necessary editing non-pros need Adobe Lightroom 3 is a powerful option that is less expensive than its bigger brother Photoshop. It can also generate full featured photo albums in multiple mediums (php, html, flash)
Just remember the best camera is the one you have with you. All it takes is knowing your equipment so that you can make it work for you.