I've received my first electric guitar from my a friend of my sister, a cheap Samick strat copy. he said he the bought the guitar for 300 (in Canada) he says it works fine after 10+ years of not playing it, but there are some problems I've been noticing for these past 7 months;

.The first tone knob doesn't work at all
.Horrible buzzing on the g string,
.the e and b string frequently won't pick up on amps unless struck forcefully,
. It is impossible to hold more then one one string with a finger even if barred until the 3rd fret.
.Some tuners won't work at all until turned a few times, and then it begins to actually tune(tested)
.Action is not even at all, some places impossible to bend
.No tuss rod cover

Anyway, I want to go get new pick ups for this guitar and fix it, but I looked up this guitar and its worth $60 in good condition. The problem I'm having is, I know I'm most likely going to buy a much better guitar in the winter, but I want to have a relatively good sounding and playing guitar as I plan on doing some small proformances with friends. I'd like some advice if I should upgrade and fix this guitar or just get a squier or epi, as a friend recommended me to do, who said his plain squier bullet was much better then it. Any feedback is great, thanks guys.
It may end up end being cheaper and easier just to get yourself a nice squire,epi etc. However I'd keep your cheap one for modding/messing around with later on. I did a similar thing with a cheapy les paul of mine in so far as i got a friend to swirl paint the body. Looks pretty cool!
There's something about those darn G strings and buzz! I suggest looking into a decent guitar setup. You can take it to a shop and have it done professionally. It's not too expensive but then maybe you dont want to pay out if it's already a cheap instrument that you'll be replacing?

You can give it a go yourself? There's lots of guides out there such as [forbidden link]

The setup should help sort out your fret buzz and tuning pegs (which I think must be down to old strings on the guitar?)

Ermmm... the inability to barr. You may want to file the nut down as the strings are probably too high at the top of the neck because the nut is too large.

Really the more I look at your post it just seems like it's in need of a decent set up! I'd take the opportunity to learn how now, with this cheap model of yours. Then when you get a better one you won't be scared of the instrument and you'll know how to diagnose any problem you might have instead of blaming yourself as a player

Don't wait for a new instrument, you'll waste precious months and you'll hate playing it!