Just a Canon p & s G9 on macro with no flash. Most functions are set to auto except the lens speed. It's a combination of afternoon sunlight and a soft white 75 watt bulb with no enclosure, just on white paper. I like a little reflection for depth, and this simple set up on my home office desk allows me the best images to edit via iPhoto.
This might be a good picture to partially illustrate the answer to the n00b question "What makes a high end watch high end?":
The light and angle was pretty good for catching the polished chamfers on the bridges, and the shock protection on the escape wheel is in there too. If this was a free sprung balance it would be perfect.
Boy, the pixelation that happens when these images are uploaded to Photobucket really reduces the quality. The very first shot in this thread is even better when seen straight from iPhoto at full size.