Entire books have been written on the subject, but in a nutshell...
1.) On-camera flash from a P&S is probably the worst thing you could do. And if you don't have a way (or the gear) to do off camera flash, continuous lighting is the way to go.
2.) You can use any type light you want, but make sure all the light in the room is the same temperature. For instance, if the room has daylight in it make sure to use daylight balanced lights otherwise your color will be weird.
3.) Try and light your subject predominantly from above and off to one side, hopefully with some kind of diffuser to soften the light source. You can also use a piece of white poster board positioned on the other side to reflect a little of the main light to soften the shadows it may throw.
4.) Depending on what you plan to use as a background, another light source behind the subject to light the background and back of the subject will also help define the subject.
5.) Use a tripod.