A few weeks ago I had researched the internet on making recordings for youtube using the USB microphone for flute, and surprisingly there was none! I took my chances and bought it anyway, and looks like it has turned out okay.
The flute I have used is a C# Indian Bamboo flute (Bansuri). The tone of the flaute was varied by moving away and close to the mic. Whilst closer to the mic and blowing full throttle, the sound appears to have a very falt and woody sound (more like a wooden sax), and controlled blowing away from the mic gives it more of an ocarina like soft sound. The mic was played in front and above the level of the forehead, and was angled perpendicular to the long axis of the flute. The only modifications made with the software during mixing was to remove some of the hissing sound and get rid of the unwanted low frequencies.
I have copied the link below, and hope it is useful for someone looking forward to record at home.