"The lamp is on top of the table."
Translation:La lampada sta sopra il tavolo.
Is "La lampada È sopra il tavolo" correct? I have a feeling it isn't...
You are right, "La lampada è sopra il/al tavolo" is correct. In fact, I think your translation sounds better than the suggested one!
It seems the preferred verb here is "essere". See point 10. Location: http://serenaitalian.wordpress.com/2010/09/09/difference-between-stare-and-essere/
Sí. Using "sta" implies that the lamp "stays" or "feels" on "top of the table."
For those who may be interested, "in cima a" also works for "on top of".
Idk about lampa, but la tavola would also be correct, though the meaning would be slightly different (and a bit strange) as tavola is a table that has been set for dinner.