I hate having to click on itty bitty thumbnails and then wait for Imageshake to load up an image. So I didn't.
You must make the light appear much larger. That lets light wrap around objects and soften the shadows.
Check out the basics of photographic lighting. A good reference to have on hand is:
Light: Science and Magic. An Introduction to Photographic Lighting by Fil Hunter, Steven Biver, and Paul Faqua. The book is a must have for learning to do photographic lighting, particularly good product photography. The second half of the book examines lighting for portraiture.