Bounce Flash
I recently got myself a new flash with my birthday money; a Nikon SB-400. It's not a very big or powerful flash unit, and it doesn't have a lot of the nice features and manual controls that the more expensive units have, but it does have the advantage of being very lightweight. The main reason I got it was to learn more about on-camera lighting, especially fill flash and bounce flash.
This image is an example of the latter. You tilt the camera head up, and instead of the light directly illuminating the subject, it bounces off a nearby surface, creating a more diffuse light. Here I've bounced it off a wall that's just out of frame, which also provides a nice directional light.
From a composition standpoint, this isn't a fantastic picture. There are a number of distracting elements in the background, especially the reflection in the window, though I bet most people wouldn't notice any of that. The reason I'm showing it, though, is that it makes a great example of how much difference lighting makes in photography. (And, of course, I'll take any excuse to show you how cute my kid is.)
I'm really excited about getting to learn this stuff. Hopefully, my photos will continue to get better.