What should I do with this old Samick Junior Acoustic? Trash it or Mod it?

Well, It's a Samick LF-003 I think (kinda hard to read cuz it's like 10 years old)

The deal is I started playing when I was like 7 and I quit after a little while. Starting again a few years ago. But this was my axe back then. It was never very good and age and neglect have not helped. I do have a humidifier now so I could see how that works on any wood issues. But what's unique about it is it looks like a Classical guitar, but it came with a steel string setup. I've thought about switching to nylon strings, anyone know anything about this, any changes I should make, etc.

I'm generally a pretty creative dude so I don't understand why I can't think of any ideas for this guy here.

Now I appreciate any help and ideas. I'm really open to everything. Keep in mind I am not very skilled at all at this and have never even replaced pickups on guitars. So my modifying experience is limited. But thanks in advance.

Pics (all clickable to view larger):

^Haha, no idea how that got there

Well I'm off to watch the Pats kick ass in preseason. I'll check back in after the beatdown.
Last edited by 2muchTV at Aug 11, 2006,
^ Haha of course. Well, that answers one question. (although I am dying to know what smashing a guitar feels like (not saying I don't get attatched to my guitars but c'mon that feeling.... ya that one (wood on ground (wow))))