90 degree stereo pair pointed at the 12th fret, about 4 inches away (small diaphragm condensers, i like the
shure pg81's if you're looking on the cheap)... this does a good job of getting alot of live fretting sounds while still getting some picking and a little boom from the body.
I like to supplement with an
AT4050 as a room mic about 4 feet away. gives a nice natural element to round out the sound. This is my favorite combo (this week anyway).