Thanks for the advice and sorry for the late reply, this is the first real chance i've had to get on.
Some people are advising me to go for it, others to leave the action be. I'm not usually cowardly but all i play at home now is classical, and i really don't want to spoil the instrument, so i think i best chicken out and just leave it be. I set up and intone electric guitars easily but i have no experience with nylon acoustics, i think changing the G string is a goer in this instance as it seems the most viable solution. As far as i can tell it has a cedar top, it looks and sounds like cedar to my ear anyway.
I bought an old guitar with a hard case to get a cheap hardcase for the Raimundo, the guitar that came with it is an old 70s Crown guitar. The machine heads/tuning pegs have loads of end play in them, but once it's tuned to pitch it holds it's pitch very well and the old wood has a lovely rich warm sound. I have tuned it down to C# and am using it to learn Domeniconi's Koyunbaba. I am going to be forced to take the action down on this guitar, the action is ridiculous even at the nut, this makes the third movement impossible to execute cleanly during the barred section and i'm physically holding them down as hard as i possibly can. I'll try working on the saddle using a replacement but will have to take a file to the nut.
I know this forum isn't a shop, but does anyone know a good source for classical guitar players to work on their guitars with online please? Somewhere that can also give advice as well as supply replacement parts would be really helpful if i could find it.