Closer to the strings will give more volume which leads to higher gain from the amp. (too close will make the sound very muddy)
Further from the strings will give less volume , which will result in less distortion. (too far and you'll not be able to get a heavy distortion sound no matter how much you drive your amp)
Also , the neck pickup should be as little further from the strings than the middle , and the middle a little further than the bridge... That's if you want even volume from all the pickups.
[Edited by SLY on 03-02-2003 at 02:39 PM]
