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What is the best cutting tool for smaller objects when scrapbooking?
I am new to scrapbooking and have purchased a paper cutter, which is great as long as the lines are straight. it is not very useful if I'm cutting other shapes, so I bought a cutter that has a blade with a pointer which was designed for scrapbooking. This makes it difficult to cut exactly where I want, because the blade is covered. Are there any tools someone can suggest for cutting pictures, tags, etc? Or do I just use plain household sciccors? Any advise is appreciated.
I crop my photos on my 12" trimmer or my personal trimmer (from Creative Memories). The personal trimmer is just for photos. Here's a link to show you: http://www.creativememories.com/MainMenu/Our-products-and-services/Traditional-Scrapbooking/Tools/Cropping-Tools/Trimmers/Personal-Trimmer (Creative Memories is a direct sales company and you buy through a consultant)
For doing tags, you can use the 12" trimmer, scissors or buy a template for tags. For templates, there are a couple of options. You can get one that you trace the image and then cut. Or you can get a Coluzzle. The Coluzzle is a type of swivelling exacto knife that sits in a template and cuts the image out. You can get a lot of different templates (circles, ovals, squares, hearts, tags, alphabets...). You get the starter with knife, cutting mat and a template or two to get you started. You add what templates you like. http://www.provocraft.com/products/index.products.php?cl=coluzzle
There are different scissors in different sizes. Depending on need, you can get smaller ones for small shapes with a 2-4" blade. Of course, scissors have tons of uses but can be hard to cut straight if you don't have a line to follow. 
I also cut "uphill".
There are a ton of options out there. You can get machines that cut a lot of shapes, a machine to punch out shapes and the list goes on. Those are a big investment though. If you just want to do photos, start with basic stuff and go from there.
Hope this helps you some! 
P.S. If you edit your question to say specifically what shapes you have had trouble with, perhaps we can give more exact advice.
Gyproc Blade Runner - Plasterboard Cutting Tool / Plastering Tool