Originally posted by mc9mm

4. hold the mic with my toes so its right in front of the mic.

Having the mic in front of the mic is probably going to complicate things, even if you are using your toes !

If you are determined to go the way of the $1.50 microphone, (which I would avoid like the plague) you may want to rig up some sort of stand.

Mic placement is a very important factor when recording the guitar and can massavely change the way your guitar sounds. Because of this keeping the position of the mic constant is also important (stops you sounding like you are using a flanger !).