On the finish nail frets: I would try out your groove-carving on scrap, and then glue in the nails (I think I would use epoxy rather than CA if I were doing that again). The classic formula for action is "a dime at the first fret, a nickle at the twelfht", if that helps.
Welcome aboard, Terry! You will find lots of helpful folks and information here on all things CBG (CBB, CBU, etc.) Feel free to poke around, ask questions, and post your stuff (photos, recordings, videos, etc.).
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Most of all, have fun!
Tres.