I am using a 96 or 97 jag-stang that my buddy basically gave to me because he can't stand the thing. Cool. I use it in a new surf rock band I'm putting together and it is a hella surfy guitar! I really dig the trem action too.
My issue is that when you get around the 12th fret and try to bend a string way up (like david gilmour or someone) it frets out after going less than a whole step. I had tweaked the action until it was annoyingly high and I still had this problem.
I brought the stang into a guitar shop the other day and really surprised at the kind of attitude the repair guy gave me. I have a lot of nice guitars and this being one of the cheapest, and having a weird sticker on it and a hippy design that his father painted on it, I guess I'm not used to being spoken to like some reject with a reject guitar... Anyway, this repair tech's solution was to raise my action a bunch more and tell me to buy a strat. Seriously. Thankfully, he didn't charge me for anything and I left calling him a dickwad under my breath.
Anyway, after I left I called my buddy who is a guitar tech. The first thing he said was "oh, well what happens with those guitars is the frets start popping out after a few years! just pound them back in a little and that should help"
And he was right! I went back and used my nylon-tipped fretting hammer to give a little love to frets 13-16, and immediately I could bend higher than I could before without fretting out. It didn't solve the problem 100%, but it helped noticably. Thought that might help some of you guys here.
Just make sure you're using the right hammer!