Microphone placement

http://www.sae.edu/reference_material/audio/pages/placement.htm

When recording instruments I prefer a clean sound so I would put the microphones not right next to the instrument in order to get this sound.

Condenser Microphones

Condenser Microphone Cross Section

Condenser means capacitor, an electronic component which stores energy in the form of an electrostatic field. The term condenser is actually obsolete but has stuck as the name for this type of microphone, which uses a capacitor to convert acoustical energy into electrical energy.
Condenser microphones require power from a battery or external source. The resulting audio signal is stronger signal than that from a dynamic. Condensers also tend to be more sensitive and responsive than dynamics, making them well-suited to capturing subtle nuances in a sound. They are not ideal for high-volume work, as their sensitivity makes them prone to distort.

http://www.mediacollege.com/audio/microphones/condenser.html

Dynamic Microphones

Dynamic microphones are versatile and ideal for general-purpose use. They use a simple design with few moving parts. They are relatively sturdy and resilient to rough handling. They are also better suited to handling high volume levels, such as from certain musical instruments or amplifiers. They have no internal amplifier and do not require batteries or external power.

http://www.mediacollege.com/audio/microphones/dynamic.html

Types of Microphones Link

http://www.soundonsound.com/sos/1995_articles/jun95/microphones.html