Hard to tell from your pix, but I'd say it looks normal. Yes - it will buzz acoustically with low action, but if you can't hear it through the amp - no problem. If you are concerned, use the allen wrench to adjust the truss rod a little at a time (lefty loosy / righty tighty). You should be good to go.

By the way - good choice of axes. IBZ RG's are good stuff.

You can't see the bend, or do you think the bend is normal? By right, do you mean with me facing from the headstock towards the bridge? Will I need my strings on or can I do it now? How long should I wait between turns?

Very difficult to tell anything from the pictures, but here is my basic approach to any setup on any guitar.

First I make sure there are no structural issues and the guitar is properly humidified. More important on an acoustic than electric.

At this point I typically write down all the existing setup data - relief, clearance at first and 12th frets, condition of frets, gauge of strings currently on it. From this I can get a direction to proceed (and discuss with the owner what we are going to do)

Next I note the condition of frets and fix any high ones. I use a piece of steel that will just span 3 frets and see if it rocks on the one in the middle. I usually use this thing, it has some other use later on

http://www.stewmac.com/Luthier_Tools/Ty ... Gauge.html

If there any high frets I fix them now - no point in doing anything else.

Next I check and adjust the relief - the bowing of the neck. That is what the truss rod is for - turning it will change the height above the strings but its primary purpose is to control the bow. Depending on the guitar and player I shoot for something in the 0.002 to 0.006 range, 0.010 is the high limit (that is the thickness of a typical business card). One eight of a turn at a time, CW removes relief, with strings on the guitar. To measure put a capo on the first fret and hold a string down at the body joint (usually 16), measure the clearance at 7 or 8 with feeler gauges. While capoed and holding I also tap each string over each fret - I want to hear a tiny ping that goes up in tone as I work towards the nut or bridge.

Once the relief is set, leave it alone. Now I move the capo to 3 and check to make sure there is a hair of clearance between the string and first fret. One or two thousands will work but you need some. You can also take the capo off and check the clearance with feeler gauges - targets might be somewhere around 0.014 for the high E going to 0.018 for the low, but be sure there is "back fret clearance" when you fret at 3. Approach this slowly, it is easy to take the slots lower, hard to take them back up.

If the clearance at the first fret is too low you probably have to make a new nut - its really hard to buy one that will drop in and work. There is a trick where you can partially fill a nut slot with powdered bone and CA glue, I prefer to make a new one. Be advised that is not necessarily a diy project.

Next I measure the clearance at the 12th fret (that StewMac tool is handy here) and adjust the bridge saddles to get the action that I want. Targets might be 0.060 - 0.070 for the high E and 0.080 - 0.090 for the low E, sometimes I'll go a hair higher on acoustics.

Last I'll check the intonation and the pickup heights and adjust if necessary, put on new strings, open a nice cold adult beverage...

While it is really awesome of you to share a luthier's method of setting up a guitar, will I really need to do all that? You're just giving a general layout of what you do right? My guitar is about one and a half years old and I'm quite sure that the frets are all right for me. I'm far from a professional. Instead of using feeler gauges (I've read quite a bit about how one measures with them and it seems a tedious process, though it is probably second nature to someone like you), will it not suffice if I gradually tighten the truss rod until when I fret the first and body joint fret I feel the thickness at the 7th and 8th frets are around that of a business card?

P.S. As you've probably discerned, I have no feeler gauges, no capo, nor any skill at taking accurate measurements.

EDIT: The information you shared is very useful, I'm going to print it out so that once I'm used to my guitar and am prepared to set it up myself, I'll follow your steps to the T. Thanks again.

Just one last question, since I strum and pick quite hard I'll need a bit of relief right? Is relief supposed to be a curve with the centre in the middle like Freeman's pic or is it all right it if it only arcs upwards like mine?