I like to keep lighting simple. I'm using my brightest light overhead and I've got a less powerful light on the left side to fill in any shadows. As you can see, I've rigged up some ghetto soft boxes for both lights.
A soft box softens the light making the shadows softer and much less ugly. Though you can buy them for hundreds of dollars a piece, you can also make them for free using a plastic bag, tape, and some cardboard to keep them away from the bulbs (you don't want to start fires).
This black board will be held up by my lovely assistant to darken the background and provide more depth to the photos. You're pretty much trying to do two things in a photo: provide adequate light and not flatten out the piece with that light. There are a thousand million rules beyond that, but that is what the real objectives are.