what does it mean for a guitar to have action. ive heard people say this guitar has low action or that guitar has high action. what the hell does that mean?
Action is the height of the string from the fretboard, low action mans the strings are lower and it is easier to bend, high action mean high strings but not as much fret buzz.
action is the distance from your strings to your fretboard. If it has low action the strings are close to the fretboard.
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ok so whats fret buzz?

exactly what it sounds like. when you play a note theres a buzzing sound that comes from the string hitting other frets because its 'too' low to the fretboard.
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ok so whats fret buzz?

Fret buzz is when your strings hit the metal frets and make a very annoying sound.
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Technically, thats just string height. Ive heard action is actually a combination of string height, neck size, and stuff like that.

Who said action has to do with neck size?
action is generally string height above the frets not fingerboard and is better defined as how easy a guitar feels to play.

fret buzz occurs when a string collides with a non fretted fret that is higher than the one being fretted and is normally caused by either the action being too low or the neck being excessively bowed in either direction and is fixed by raising the action or adjusting the truss rod.