Thank you all for the responses. In response to questions asked. My budget is 2-3k. I am not looking for an overprocessed sound. I would only like to recreate my guitars natural sound only louder. Of course EQ and reverb are probably a must. Beyond that maybe only a compressor. My singing partner and I harmonize very well together and we both like a minimalist, natural sound. CSNish.
As far as pickups go, I have tried about everything in previous guitars. Fishman UST, L.R Baggs UST and Lyric and sound hole M-1active. I am leaning toward giving the K&K a go if the mic idea can't work. K&K users what are you having the best luck with?
I appreciate all the help.
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"All the money is down around the third fret" 
A couple of good guitars
Mac Computer
#2 Pencil
Various Scraps of Paper
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