I was gob-smacked by the sheer prettiness of the guitar as I removed it from the box. After waiting for the instrument to warm to room temperature, I tuned up. First impressions were very good, with beautiful clear tone and plenty of projection. However, the guitar had a pronounced buzz from the 2nd string (B) when fretting on the 3rd fret, and further careful listening revealed with enthusiastic strumming, several other strings also buzzed when fretted at the 3rd fret.
I put a short steel straight-edge across the frets and this revealed that the 4th fret was decidedly high - especially toward the treble side of the fretboard. All frets looked correctly bedded, and the hump appears to be caused by a non-perfect fretboard.
I removed all strings and stoned the 4th fret, and then checked all the others, which although not perfect were entirely acceptable. After re-stringing, the guitar now sounds perfect. The sound through the pickup and a Trace Elliot Acoustic amp is nothing short of fantastic, with concert-level clarity with normal play, and funky grunge with more enthusiastic picking, and the volume advanced.
The remarks others have made about the strings are valid, slight, but distinct improvement in tone was achieved with a quality set of strings.
This is a lovely instrument, and I'm very pleased with it - now. But it does illustrate a very important point - if I'd been buying this in the shop, I would have haggled with the dealer for a discount due to it needing remedial set-up. Notwithstanding the above, even with the extra setup, the guitar is still a bargain.
If asked for advice I would say - buy it, but be prepared to do some setup work if yours is below standard. (or pay to have it done)