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.
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.