I prefer a Canon EOS Digital Rebel T1i. Its a high quality, mid level camera for under $1,000.. This camera offers high resolution 15 megapixel images with enough to onboard sensors to correctly measure the picture to provide optimal balance and tone.
I would use a 50mm lens. The 50mm is called a "normal" or "standard" lens because the perspective closely matches that of the human eye.
Also use a flash diffuser to soften reflections on vehicle surface created by a flash. Wax paper works well as a flash diffuser if you really like squeezing a nickels into a dimes.
Finallly get yourself Adobe Lightroom 2 for tweeking. It provides for a far better workflow when processing large numbers of photos which Adobe Photoshop will not.
Inside is definitely better than outside considering weather factors. I would make sure that you have full spectrum overhead lighting. Color actually derives from light. Full spectrum color lighing makes primarly and secondary colors appear true.
John is right the Rebel t1i is a good camera and Adobe Lightroom is a great program, but I think you can get the job done just as well for a lot less money. The images you put on your website are less than 1 megapixel. Longer lenses are always better but there are times when you need the wider angle. The Canon SD1300is is a good point and shoot. It won't do all of the things the rebel will do but it should fill your needs. I also use ACDSee to edit my photos. Again it isn't as powerful as Lightroom but for $50 it does a lot.
If you still want to design a shooting room let me know, I can help you.
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