Truss rod adjust/ action on USEW Custom

[Severinsteelsmith]

So I just received an awesome USEW RG and I am doing my best at setting it up. I can do pretty much everything maintenance wise except fretwork, major repairs, and truss rod mechanics (which I am working on getting better at). So I think I am pretty close to where I want it, this is the process so far:

So I changed string guage from .9's to .10's ,tuned down a whole step to D, and balanced the trem. So with that taken care of, I moved on to the truss rod/ bridge. As it was the open strings buzzed whch led me to believe the rod was too tight, not enough relief. So I loosened the rod a decent amount. I then realized the rod was too loose because the upper frets were 'fretting out', so I slowy tightened it and checked out the open strings and the upper frets each turn.

Here is where I am stuck:

I am looking good as far as the open strings and the upper frets are concerned except for the 12th fret. The G string fret's out a little bit as well as the B string (a little less) and the E string (a little less). The D, A , and low E seem pretty good. Also, when I bend the high E and B string, it totally frets out near the middle of the fret. Is this a sign of a super worn fret, or am I just in need of a truss turn?

Thanks guys!

Cameron