I'm using a set of Manlius "Fat Diane" PAF style humbuckers in it. I've got several sets of Mick's pickups over the years, and he does a fantastic job.
Fat Diane PAF
As for set up, it's pretty much the same as any of my other guitars. Not much neck relief. Fairly low. Pickup pole screws adjusted to match the radius of the fingerboard and strings over the saddles. I like the pickup height just a tad lower than what would be a normal spec. I like a cleaner, natural PAF sound. They still get nasty when needed.