Photoshop works great if you're only working with one pic. It doesn't work so well for galleries, however, as it is difficult to reproduce the exact same effect pic for pic.
Tracing paper eh? I'll have to try that when I get back home. But you're right, lighting is key, particularly for the white backgrounds, which I feel are the hardest to work with. Not to mention trying to take pix of white toys with a white background is pretty much futile. I've taken to using darker backgrounds, like this for Alt Wheeljack
And as for Remy, that guy is incredible. I've been trying to take those kind of pix for YEARS and still have had very limited success, such as these I did for Alt Ravage and BT red Meister
The biggest problem I've found is that you are your own worst critic. I take a pic, photoshop the hell out of it, and think it looks like crap. But when I show it to others they say it's really well done (though how much of that is truth and how much of that is just mindless praise is beyond me). But, you keep working at it. I'll take a pic of my setup at home and do a little tutorial on how I do my pix later on.