Piling on to hopefully close the loop for future searches. I don't recall this thread when it was fresh, and I was around here back then. Maybe the next time this thread get resurrected cooler heads will prevail, aided by this information.
Sanding the saddle is the only option for setting action with a dovetail neck. With the NT neck system that we all know and love, a trained tech can set the proper neck angle in 15 minutes by changing out shims and usually get the action to factory specs again (6/64" bass E and 4/64" treble e at the 12th fret). Then if you still want an extra 1/32" of lowered string height for your playing style and feel, you can sand 1/16" off the saddle bottom. Most techs experienced with dovetail necks ONLY know to sand saddles. The Taylor system is different and they can mess your guitar up.
The ES2 pickup element is an extra wrinkle. If you don't remove the side tension from the saddle by first loosening the three screws, the element can be damaged when you forcefully pull out the saddle. It is always a good idea to work with a new saddle and save the original - the voice of experience (and mistakes) here.
