Even an average camera can take really great pictures. The biggest factor in getting decent pics for me is getting proper lighting. A lot of us use light tents for this reason. There is a sticky in the "Pictures" section that explains how to make one and they make all the difference.
I use a cheap Sanyo VPC-E2100. It was only about $150 from Wal-Mart and it does a great job if I do my part.
Here is a pic I took with mine the other day that came out pretty decent. No photoshopping or anything like that. Just a light tent and a steady hand.
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