Came across this awesome performance of one of my favorite guitar pieces by Francesco da Milano, and it sounds great. It appears to be a couple of spaced ribbon(?) mics 3 or 4 feet away from the guitar - is that it?  Anyway it sounds great to me. 
 

In order of importance, nice piece, nice performance, nice guitar and nice room too. Looks like a couple of stock Neumann U87's in a spaced pair out front a little. The Pres probably would have been nice as well. Good choice (AB Spaced pair) as you can hear quite a lot of the room (on phones) but the direct sound is pretty nice too. The guitar sounds quit centered (mono phantom image) Somehow that recording is keeping the guitar itself well centered but the room sounds wide. Must have been in the placement and perhaps the two Neumann's are facing in slightly towards the guitar. It works well.
 
 

It sounds great because the room sounds great. I couldn't ever use such a technique in my garage studio.
 
But if I ever did have the opportunity to record somebody that good I'd go out and find a better room, and use either a spaced pair like in the video, or a Mid/Side combination.
 
I'd also rent better microphones than what I've got. Those probably aren't ribbons, I'd guess. You'd really need condensers to record such a quiet instrument from that distance. And turn off the A/C and hand out coughdrops to the crew.

There's no denying how good this sounds Sharke, that's for sure. My issue is the decay time within the room. It sort of sucks the sound of the instrument out a bit to my ears. This is not a bad thing, just a personal preference and observation.
 
I like to have a bit more of the guitar up front so I would have definitely put at least one mic where the neck meets the body and then mixed everything. Long decay times in any room annoy me. Partly because of that artifact being such a over-used effect in the 80's to where I was guilty of it, bashed for it and once I really learned the extent of my mistakes.....long decay just doesn't sit well with me.
 
I also firmly believe you can get this sound using impulses or a good verb while mixing the wet/dry so that it's even. Though I liked the tone of the guitar, the performance and the over-all vibe, it sounds different to me when I DON'T watch the video and see that church type room. It sounds like a dude using too much reverb without enough dry signal. Again...that's just ME brother. I'm not trying to bash anything, just sharing my opinion.....but Jeff nailed it. A good player with a good instrument in really just about ANY room, will yield good results. I don't even think the mic will matter other than coloration, personal preference and the engineer matching the mic(s) for the player, room and situation.
 
Throw two Samson's or Radio Shack mics on that guy and it's still going to sound incredible. :)
 
-Danny

Agree with good room, mics, and don't forget mic preamps.  I think this recording had too much reverb added for my taste.  Beautiful playing!

I wonder if this is the kind of setup Naxos uses to record their CD's. I have a ton of their guitar ones which I bought 8-10 years ago, mainly because they were cheap and generally very good quality. Many seem to have a similar sound to this video. There's a couple which are a little muddy and sound like they could use some EQ, but on the whole I like the sound. I think this big room sound is quite common for classical guitar recordings though yes? It probably depends on the type of music as well - a long decay time is going to sound better with this kind of modal Renaissance music better than it would sound with a piece that's modulating all over the place.
 
I too lean toward less reverb than more, but I don't know, I think it works with this piece. These old lute tunes will have commonly been heard in churches and halls.
 
Mind his technique is perfect. Nails shaped and polished to perfection....

I also like the sound of this recording:
https://www.youtube.com/watch?v=8B6jOUzBKYc
 

Naxos doesn't really have a setup.  They hire freelancers for a very small fee (~$3000), rather than the typical production companies, to do their recordings, so the quality varies.  A lot of people just refuse to work with them.  
 
I agree the reverb is a little much.  I seriously doubt it is all room since the decay is unnatural.  AB omnis are a typical guitar setup for classical, though U87's usually are not the ideal choice IMO.  It is a little tubby especially considering the size of the instrument.  Probably could use a close mic for clarity and brightness.  Still, it sounds decent.  

Rimshot
I also like the sound of this recording:
https://www.youtube.com/watch?v=8B6jOUzBKYc
 

That sounds great - I also love the wacky string effect - I presume that's some kind of frame rate thing? It looks very trippy....

rumleymusic
Naxos doesn't really have a setup.  They hire freelancers for a very small fee (~$3000), rather than the typical production companies, to do their recordings, so the quality varies.  A lot of people just refuse to work with them.  
 
I agree the reverb is a little much.  I seriously doubt it is all room since the decay is unnatural.  AB omnis are a typical guitar setup for classical, though U87's usually are not the ideal choice IMO.  It is a little tubby especially considering the size of the instrument.  Probably could use a close mic for clarity and brightness.  Still, it sounds decent.  

I guess that explains why those Naxos CD's are so cheap....