Hello Vixen and say hey to Reynaud. Here's my 2 cents:
I personally would not undertake a fret job unless you have some corresponding experience. As for raising the saddle, if it's too high the intonation will go off. Often saddles must be compensated to allow for variance and I think that's a luthiers job.
Here's the deal,IMHOP. If you want to keep the guitar because it's a part of your life, then pay the $200-300 dollars it will cost to fix it right, all the way. Then you will most likely be set for several years. If you are ready to move on, then put it in the case with a humidifier, slack the strings, and go look at the basic models of good guitar brands, Taylor, Larivee, Seagull, etc. These new guitars are generally much better than guitars made years ago. Plop down the $250 -300 you would have paid and pay the rest off on time. (I know credit is evil) A guitar is worth a little interest, and you'll probably play it the rest of your life. Don't be penny wise and pound foolish!
Just my opinion of course, but I've never regreted the money spent to purchase a good guitar.
Hope to see you at the Getaway.
Chance