Although SM57s don't require phantom power (+12-48 V DC) they don't have a very hot output which can lead to noise recordings. The solution to this is to use a preamp (even a Behringer will make a difference).
For recording classical, point the mic at the 12th fret about 12 in away.
If you are going to shoot striate into a computer it is worth remember Mic level signal is of a lower impedance than a guitar signal or line level signal and a DI box can make a huge improvement to the quality of your recording.
You can also get contact mics however when ever I have used them they have sounded terrible.
My instructors page and www.studiotrax.net for all things recording.
my toons Brought to you by Dr BadGAS
my toons Brought to you by Dr BadGAS