Yeah, I was thinking you're testing between the capo and the nut, but you dont just pick the string?
Nope. You just measure the distance between the top of the 1st fret and the bottom of the string. It should be a few thousands of an inch or more, but not too much. They should be pretty close to touching. A thin guitar pick should be held in place if you have the capo in position and stick the pick between the fret and the string. You do it over the fret wire itself.
I don't think my ruler goes to thousandths
Feeler gauges are awesome for this, but you can use a thin pick or a credit card. It should be right about the same distance as a credit card is wide. It should be smaller than that distance - as it should hold the them in place. There should be enough friction to hold a thin pick without it falling out. Something like a .72 mm pick or maybe even a .50 mm pick depending on your personal preferences.
Oh, hold your guitar like you're playing it - and it should hold 'em in place.
I thought that'd be obvious, but I figured I'd better make sure.
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