I'm guessing the overall length of the piece will grow when he (DavidK) adds his parts to it???
If you recorded this close-mic'd, wouldn't you lose some of the resonance of the guitar body, overtones and such? Or would you blend closer and further mics together?
Looks like it's going to be around 6 mins long. There's a middle section I didn't include in this first version and then it returns again to this theme.
Re closer mic distances, I think 2 ft would be about as close as I'd get for a nylon string - maybe just a little closer w/steel string playing softly. Yeah, too close and it sounds kind of artificial.