Originally Posted by milkpowder
Yup. Don't use the built in flash on your camera and avoid direct light. Try to create a bright ambience around your subject. Natural, unobtrusive, reflected lighting is always the nicest.
Correct. If you must use indoor tungsten lamps, make sure they're plenty far away (~5-15ft. for something that small). Find the right angle, and snap the picture. If you must use a tripod, use one.
Essentially, keep the lighting source farther from the subject than you are - the closer the light is to the subject, the brighter and more concentrated the blown-out portion of the image will be. You won't completely eliminate the hotspot due to the super-reflective surface, but you can use it to your advantage by highlighting the edges if you find the right angles to shoot at. I usually shoot most of my eBay product shots with a 75w and a 150w Tungsten lamp - 75 for fill, 150 for a good main-light source.
If you want to use reflected light, get a piece of cardboard and cover it with some very lightly-crinkled aluminum foil. Try to keep the background plain and simple and equally well-lit .