Hi Malmsteen,
I'm very new here but i know there are some tutorial's concerning removal and re-fretting necks in the tutorial sections. Basically, how i do it, and please take note i am NO expert, is to heat the fret by laying a soldering iron on one end for a few mins (depending on the iron's power) to loosen the/any glue that's present and using a pair of fret pulling pliars gently ease the fret out....it sometimes helps to give the fret a slight sidewyas tap (and i mean slight) to release it from it's bed.
"and another question regarding inlay:
instead of drilling out cavities for the inlay is it possible to just cut out a piece of the fretboard (drill a hole right through) to make it easier? and if it'll effect the sound couldnt you glue a thin piece of rosewood at the bottom of the hole?"
I think i get the gist of what you're saying here. You must take into account that most pearl / abalone is only generally available in 1mm > 2mm thicknesses and your average fretboard is 5 > 6mm in depth so again i think you'll be making a headache for yourself by trying to fill up the holes to a point that the pearl can be layed flat enough with the fretboard. (mind you, chambered fretboard anybody, now there's an idea !?!?!!?....or not as the case may be!)
As with all things like this i suggest getting a scrap peice of hardwood, some loose change (as pennies, no matter where you live, tend to be between 1.5 > 2mm) and try your theory out BUT at the end of the day i suggest that if you take the frets out you'll have a clear run to route the cavities to within .25 > .5mm of what you need quite easily with a Dremel type tool which will leave you minimal sanding to get the pearl flush which in turn will lessen the chance of you losing the fretboards radius due to excessive sanding.
Jem
PS: I know there's a protocal on P.G. of where you post stuff, if i've posted this in the wrong place i do apologise !