K&K makes pickups that go inside the guitar, the "pure western". Easy to install, took me about an hour including the time it took to read the directions 10 times. You have to enlarge the hole where the strap button goes on the bottom of the guitar to put the plug jack into. Nothing tricky, I promise.
I use it for playing live... it's pretty good, but there's no pickup that'll make the guitar sound like it's in a nice room with a good mic.
The sound is good, better than the soundhole style pickups I've used which are prone to feedback.
The other option would be the style that goes under the bridge, literally underneath the little plastic or bone piece. Fishman makes a lot of those. I've heard some of them that sound pretty good.