Alright the classical guitar I have has it's strings too high. What can I do to fix this problem? Now before you tell me to get a pro to do it, let me tell you that this guitar is 30 years old. My mom bought it for 20 bucks when she was a kid in Mexico and spending money to fix it just isn't worth it. I just want to fix it for the hell of it and to have a classical guitar until I can commit to buy a new one.
"The rule of law -- it must be held high! And if it falls you pick it up and hold it even higher!" - Hercule Poirot

© Soul Power
Sand the saddle down a bit. (Or nut too maybe depending on how bad the set up is.) There should be sites that can give you ballpark string distances from the fretboard at certain frets you can use as guidelines. Maybe also try lower tension strings.
If you're going to do something wrong, do it
There are 2 ways to fix this.

1, sand down the saddle. The problem with this method is that if your action is very far off you still won't be able to sand it down enough.

2, do a neck reset. The problem with the neck reset on a clasical is that to do it you have to remove the whole top of the guitar so it's pretty much impossible for the average joe to do it themselves.
Not taking any online orders.
Here are some pics so you can see how the problem is. I measured how high it was at the 20th note and got about 1cm.

"The rule of law -- it must be held high! And if it falls you pick it up and hold it even higher!" - Hercule Poirot

© Soul Power
i take it doesnt have a trussrod, it looks like your neck has way too much bow in it, maby get some lower tension strings, although i dont think you are going to find them..
perspective is always hard to get from close up pics so correct me if I'm wrong... That looks like the strings are about 1/2" off the fretboard at around the 12th fret. It needs to be at around 1/8" and there is no way you are going to get that down by 3/8ths by sanding down the saddle. The saddle has already been filed down at some point and it looks like it's as low as it can go.

Classical guitars already have low tension strings on them so the "lower tension strings" idea will not work. It's already as low as it can get.

You neck looks dead flat to me. On a classical that is what you want. I can, however, clealy see that the neck angle on the guitar is wrong. Typically the neck is angled down about 3 degrees on a classical and it's left flat on a fleminco guitar. Your neck looks like it's angled up 5 or 6 degrees.

Your guitar needs a neck reset. That will cost you at least $300 on a classical, and it might cost significantly more. Even tho you got the guitar cheap, it might be worth fixing. Well built old instruments are worth as much or more than well built new instruments. So take it to a luthier and see what they tell you. They will give you a price quote for fixing it and if you ask him if it's worth it he should be able to let you know.
Not taking any online orders.
^ I thought classicals were supposed to have a positive neck angle??
I agree the needs a neck reset though, the angle looks too great.
A lot of luthiers will do all sorts of strange things with the necks of classical guitars, inculding put a positive neck angle on the guitar but then the rest of the body is made to accomidate that so it all lines up, but it's not commen in your run of the mill classical to have a positive neck angle. I did say it backwards in my other posts. It's flat for classical and angled back for flaminco
Not taking any online orders.
Oh ok, i just reread the thread on luthier forum where i heard about the upwards neck angle it seems they either build the upwards angle when ataching the neck or by having a falt neck and using a wedge shaped fingerboard.

(off topic) any news on the rosewood? or are you still waiting on the bandsaw motor.
Yeah, still waiting for the motor. It has to ship in from the USA and those boats take about 2 months to get from port to port. So I should be getting it sometime very soon.
Not taking any online orders.