[cpmusic]

If the neck relief is correct (slight forward bow, almost flat) and the saddle can't be sanded down any further without losing contact with the strings, take the guitar to a qualified professional. It may be possible to effect a repair by shaving the bridge and/or ramping the string holes, but if that's not the source of trouble, it will only be a band-aid solution that could cause problems later. It might be that the guitar is too wet or too dry (I forget which raises the action), which would mean a very simple fix. OTOH, it may be that the neck angle is off, and if so, it should be reset unless the guitar is too inexpensive to warrant that kind of repair.