So, I've had my Squire p bass for about a year and its kinda starting to die. I'll have a new bass by the end of the summer, so i figure i can just mess around with this one.

To take all the frets off, how would i go about doing that? Can i hammer them out and fill the grooves with something? I've heard of filing them off but that seems like alot of work.

Thanks in advance for any advice.
Trample the weak, hurdle the dead.
...How would you hammer them out?
Usually defretting a finger board takes some skill and patience because the tang of the frets can take chunks out of the wood.

Check out Project Guitar Forum, there should be a lot of help on there.
you need a hobby iron/soldering iron to heat the frets, assuming they are glued in (heating only works with titebond/hide glue/wood glue.)

You need to go to a hardware store, and get a small pair of pulling pliers, grind the face of the pliers down FLAT. use the iron to heat the frets, and slowly pull the fret out, starting at the far edge of one side. i set the pliers down flat, around the fret, get a good grip, and tip it left and right to left the side up, then i can get under it. if done correctly, your wood will not chip out. yo can fill the fret slots with wood glue, wood giller, epoxy, anything you want really. then you need to get a radius block to sand it out, or just carefully do it by hand. you will likely need to lower your nut slots afterwards.