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How can you set up a basic circuit so that when the switch is open the light turns on, closed off?
Have a light bulb, switch, battery and wire.
Closed normally turns it on, in this problem i have to have it turn off when closed and on when open.
The use of a relay would probably be your most practical solution. Use a relay with a Normally Closed contact.
Read this:
http://en.wikipedia.org/wiki/Relay
Oops! TAREQ is right. Use a switch with a Normally Closed contact.
Read this instead:
http://en.wikipedia.org/wiki/Electrical_switch
Regarding your additional details:
If the switch you are using must be Normally Open then use a relay. Wire the switch to energize the relay when it closes. Wire the light to the relays Normally Closed contact. When the switch is opened the relay will be deenergized. In this state, current will flow through the Normally Closed contact lighting the lamp.
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