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How do I set up a microphone so that it is "hanging" on the mic stand?
such as recording artist there mics are "hanging" thanks
Those are special mic mounts that come with large, expensive condenser mics.
They are isolation mounts.
The mic you usually see, is the wonderful Neumann U87 (I LOVE this mic... too bad it's over $3,000.)
http://www.musiciansfriend.com/product/Neumann-U87-Ai-Shockmount-Set-Z-Microphone-with-Box?sku=271404
Well, actually, some of the cheaper condenser mics have them too.
This is the mic I have:
http://www.musiciansfriend.com/product/Behringer-B2-Pro-Condenser-Microphone?sku=270491
Weather it's hanging, or sitting upright or not makes no difference. It's the shock mount that makes the diff - to keep rumble noises from the stand from getting into the mic.