#1
I've had my Yamaha Eterna for 14 years now. I stopped playing a few years ago, but have picked up my guitar once again. I realize now I stopped because I wore down a couple of frets to the point where my best option is to capo up above them or suffer through the buzzing. The guitar cost me only $300 at the time, and what I can't figure out now is whether it's better to go somewhere and get the guitar refretted... or just get a new guitar. I'm guessing the latter is what I should do, but just thought I'd get some opinions here first.
#3
Here's some info from master luthier Frank Ford of Frets.com. In the examples on the page I've linked to, he is showing some of the potential problems that could arise during a refret job. Not all guitars are the same. He does a great job of covering the majority of would be hitches to an otherwise nice smooth refret. This might help you to make a decision as to getting the job done, or simply popping for a new guitar.

http://www.frets.com/FRETSPages/Luthier/Technique/Frets/FretTrouble/frettrouble.html