I am a firm believer in the idea that the camera doesn't matter all that much. As others said, lighting is the key, along with having the poatience and persistance to stick with a knife until you take that one or 2 good shots you are happy with. For every pic I end up keeping, I probably delete 20.
I have been using a $150 SOny Cybershot 3 MP, it's a very small camera, not professional oriented by any stretch, it's made really for the wife to throw in her purse for vacations. But, even that camera is capable of a pretty crisp, detailed shot, if the light is good.
There are 2 basic ways to get good light. One is to shoot outdoors and use daylight. This can be problematic at times because, well, you are always at the mercy of the weather, it can start raining, or, the sun can come out very strong and too much sunlight screws things up, on the other hand, a sky that is very blue can also screw it up and give your blades a blue color. It is for these reasons I found a light tent on Ebay for $49, on Coop's advice, I went to Home Depot and bought 3 cheap $5 aluminum clamp on lights, and bought 3 19W Compact Flourescent bulbs, BUT, they must be the daylight balanced ones which have a Kelvin temperature rating of between 5 and 6,000. ANything under 5K, you'll get a warm, yellowish tint. The last thing to get is a copy of Photoshop Elements, you can find V2 now for like $10-$15.
So, for a "studio" that cost me only a bit over $200 including the camera, I am able to get a decent, clear picture, again, it's more about how willing you are to keep on shooting the same subject until you get it right, than the quality of the equipment.
Here are a few quick examples of pics I took with the above setup.