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There, their, they're.

Set is an irregular verb; therefore, I set the book on the table is past tense. Present tense would be I am setting the book on the table.

Well, yes and no. To be more specific, "I am setting the book on the table" is present progressive. Simple present tense would be, "I set the book on the table". So the sentence is actually identical in present and past tense. The simple present tense tends to trip up students and general language users, because it is not commonly used anywhere, aside from in cheesy voice-overs, diary entries, one-liners from Die Hard villains and such.
 
Well, yes and no. To be more specific, "I am setting the book on the table" is present progressive. Simple present tense would be, "I set the book on the table". So the sentence is actually identical in present and past tense. The simple present tense tends to trip up students and general language users, because it is not commonly used anywhere, aside from in cheesy voice-overs, diary entries, one-liners from Die Hard villains and such.
Okay, I looked it up. You are correct. I set and I am setting are both correct.