1.Does the truss rod harm the sound of the instrument?
　 Many owners don't know they have a truss rod until they need it, and fall happily in love with the guitar in blissful ignorance. Then when they need it, they are very happy it's there. I say listen to the guitar. Does it sound good? Fine.

2.About the action and strings - the string height at the 12th fret is a little higher than I'm used to - maybe a 32nd of a inch or so. I'd just like to hear about your philosophy concerning the setting of the action.
　 At the time of shipping I normally set the string action a little higher than I personally prefer it, because some customers like it higher, and it is always easier to lower action than to raise it. Consequently, if you like it lower, you should only have to take a little bit off of the bottom of the bridge bone. You can do it yourself, or have a guitar tech do it.

3.I am wondering if there are certain strings that would work, or sound best on the guitar. I've never played on high-tension strings before either.
　 I send the guitars out with high tension strings. The rationale for the high tension is I want to be sure the instrument can handle it. Actually the amount of extra tension in the guitar is minimal. Normal tension strings will work fine, maybe even better. I don't believe there is a direct relationship between volume and string tension.

　 There is a two way acting truss rod also, so any changes in the neck due to string tension can be accommodated. This can be adjusted by a guitar tech, or if you're good, by yourself. If you're going to use lower tension strings I would change them first before deciding to lower the bone or adjusting the truss rod.

　 We always put high tension strings on the guitar, but I don't have an opinion on whether that is the best choice. Each person finds out for themselves. I suggest trying a variety of string brands and tensions to come up with the right combination for your own technique and your own guitar.