I have a digital camera and a tripod, but it still seems like whenever I try to take a picture the color is way off, and even messing around with Photoshop it still never really comes out right. Would taking the pictures outside with natural light hitting the painting work better? Or are there types of light bulbs that work better?" -- Lawrence C.
Now you know why professional photographers charge so much... Seriously, I believe that with perseverance and experimentation you should be able to get acceptable results, though you should judge the time this takes against the expense of getting someone else to do it for you.
Artificial light very definitely has an impact on colors. The first thing to try would be to see if you can change the white balance setting on your camera -- does it have an artificial light setting which then automatically adjusts colors to compensate. (For more, see this article on white balance from Liz Masoner, About.com's Guide to Photography.)
Flash needs to be bounced off a ceiling so it's reflected light rather than harsh light straight onto a painting. If you can't change the angle on your camera's flash, try taping a piece of tracing paper over it to diffuse and soften the flash.
Having daylight bulbs (those blue ones) will help as "normal" bulbs have a very yellow light. I personally don't like daylight bulbs as the light from them feels cold, but many people swear by them. (See also: The Light on Your Painting.)
I find natural light outside the easiest, but watch out for reflections and shadows on the painting. I put my paintings up against a wall in a bright, but not directly sunlit, spot.
Photo-manipulation software, such as Photoshop, can do all sorts of things to a photo, but it takes time and it's better to try to take the photo "right". Tools to try include saturation, contrast, light balance, and levels (see How to Use Levels in Photoshop from About.com Photography).
