This has been a topic that has come up quite a few times this week so I thought I'd share how I photograph my cards.
I use a DIY light tent box similar to this one...
http://digital-photography-school.com/blog/how-to-make-a-inexpensive-light-tent/
along with a natural light lamp. Sometimes I use natural sunlight if it's a nice sunny day. Whether or not I use a flash depends on the paper color, lighting, and angle I have to position the card to show all of its details.
I use the Canon Powershot S3IS. I honestly don't really know how to use it! LOL It's one of those point & shoot with manual capabilities type cameras. I'm not sure if that makes sense but basically I wanted the Rebel but it's a little too pricey for me. This one allows me to learn how to shoot in manual but still allows me to use automatic settings just like a point & shoot.
When I photograph my cards I normally just fiddle around with it until I come up with an image that looks good. I usually keep it on the AV or TV setting along with the Macro option. For close ups I use the super macro option.
I use either Microsoft Digital Image Pro or Picasa photo editing software to straighten, crop, and adjust the lighting and sharpness if it needs it. Hope this helps!