I have a guitar which i've had for about a year. Its not very good but i have no money and its all i've got. My problem is that on the fret bars there are small grooves, going across the neck, which deaden the notes on the frets. Is this a common issue and is there any way of repairing it.

Sounds like you need to get your guitar refretted, usually found on guitars which have seen a lot of use. Best to get that professionally done I'd say.
Perhaps someone else has a different hypothesis though and/or inexpensive fix.
Okay thanks. I doubt its worth it because that would probably cost more than the guitar did. I'll probably just buy a better guitar if i can get the money together.
I you are 100% sure it is the grooves, than your frets (or some of them at least) need to be replaced.

I have had dead frets though and it has been fixed anyway from making a truss rod adjustment or simply raising the bridge a little. It wouldn't hurt to take it into a shop and ask if they can diagnose it for you. Most of the places around where i live are willing to take a look at my guitars free of charge.
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Get another guitar. If your current one is shit, get a cheap one that's decent. A few brands make good cheap ones. Only if you're willing to spend 300-400 dollars.
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If you find you need a new guitar: Find a website or something like that where you can buy used guitars.. it is a very cheap way to get a good guitar, because: a lot of noobs go buy expensive gear when they start, and then after 3 months they find they don't won't to play guitar anymore.. and so you can buy their great gear cheap, and it will be almost as good as new because they only used it like 3 times, it might even have the factory strings on still haha =P
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