caman:
1.) Some good tips here on welding photos.
2 of mine are at this website: http://www.iasonline.org/
2.) A good thread on macrophotography by tusco in this forum on 02-14-05.
3.) Using caution in the weld shop is always a good idea (threads on this topic as well). I have been shooting photos of welders in progress for about 13 years. All light rays (part of the magnetic spectrum) are diffused to some degree everytime they pass through a medium such as glass, plastic, etc. Even a clear piece of glass will diffuse some of the ionizing rays passing through.
In other words, as long as you don't remain stationary and stare (even through the lense) directly at the arc, for a long enough exposure time, and at an ideal distance, flash burn does not occur. Not any more than you will get burned observing welders as you walk through the weld shop. We all learn to train our eyes away from the direct arc-light and do so every day. I did not say throw caution to the wind, leave that for the Hollywood "welders".
4.) As noted above, use plenty of background or fill lighting, this helps with definition and contrast.
5.) Digitals (IMHO) fair better on actual welding activities because you can doctor up the images far better than scanned images using SLR's. This is dependant on the photo-manipulation software you use. And, as noted by Bill, you can use the LCD to look at instead of the view finder (which I have never used on my digital). With my SLR's it's always hit or miss for close-ups of actual welding. Indoors is the most difficult, (also IMHO) for foto-novices like myself.
I could send you some photos of welds in progress (GMAW-SMAW-FCAW) and you would be hard pressed to figure out which ones are digital or 35mm.
6.) One very good piece of advice by Bill also is to take care of those lenses regardless of the camera. My digital has a big-ass piece of spatter on the lense from PAC - that does not show up in the images. I got lucky on this, I have more $ tied up in lenses that camera bodies.
Some of the photos with flying sparks do look awesome!