I'm at a total loss as to how to make this photo into a decent product photo. What can I do to it to make it better? Here's a link to the photo: http://imgur.com/ol7Cw
Depends what you mean by product photo. If you mean an ad for instance, crop the image of the product out and make some form of Ad or poster out of it.
Check out some other examples of product photos. (I just google imaged 'gift baskets' for examples.) Most use either a plain white background, a colored texture or use a table/counter/whatever as the background but blur it quite a bit. just make sure the product is the focal point of the image. You would want to crop all of that extra background out of the image so the product fills most of the pic. I hope this is what your question was asking...