You're on the right track...

Tweak with the attack time on the compressor; slow enough to let the "pick attack" through, fast enough to clamp down on the "body" of the guitar tone.

Release time will be dictated by the tempo of the part; faster for faster, slower for slower, etc.

hope this helps,

Don't overlook pick choice as well! The difference in "pick click" from a .72mm to even just a .80mm is pretty significant.

Having different picks onhand to try in the studio on acoustic will give you a lot more variation than you'd think.

yes, it's all about pick choice!

thinner picks will yield much more pick noise relative to guitar tone. I like the orange tortex on acoustic. you can go even lighter for more noise.

Chris,
Small diaphrgam mic, 6" at the point where the neck meets the body, aimed slightly at the sound hole. Medium Fender or Ernie Ball (same thing, just different branding) pick.

Thanks for the Saddle Rack info. It's located about 2 miles from where my studio used to be! My house was near there too. If you look at that map, you will see "Stewart Ave." That's where we used to go when I was a teenager to race our cars. We called it "Little Fremont", in honor of the raceway that used to be in Fremont. It was waaaaay out in the middle of nowhere then (late 60's). Kurt

We just finished some tracks involving this very technique....the guitar was strung with regular gauge d'addario's and a .60 nylon pick was used...a small diaphram mic ADK SC-1 was over-the-shoulder aimed right at the upper bout at just above ear level...a Studio Projects B-3 in figure 8 was positioned at the twelveth fret and slightly downward at 15" out...these were recorded on separate tracks flat and when mixed a small amount of eq added to each mic to enhance this 'pick attack'...its very much like adding another hi-hat to the mix only this one has the 'notes'....