i will either be using a canon XT or XTI as the camera body
do i need a DSLR? or a nice P&S will do? like a G7 or G9
i want to make the process as simple as possible
You may take a look at Table Top Studio. They use CFL lights. A lot cooler running and easier on electric bill both for lighting and a/c. Whatever camera you use you will need to shot RAW with custom color profile. That will provide consistency across product line.
