Yay!
Go for it!! Like I said mine was/is about as cheap as they come and although the quality isn't fantastic, its not as bad as I thought it would be. I recorded in Audacity (free download) all i did was hit the red button that I assumed was record..lol..played..then exported as...something..wav I believe..rather than saving as an audacity file....but then I had to convert it into an MP3 to upload here.
As far as mic placement...dunno...mine is one of those you are supposed to clip on your shirt (to talk into) but I clipped it right to the soundhole. Worked for me!! I'd try a couple of different placements to see where you get the best sound from.
I am anxious to hear what you've got for us!!