I took my Sheraton II in for a setup a few weeks ago. Just around the corner from my apartment is Tecolote Guitar Works, a repair shop combined with an art gallery on Morena Blvd in San Diego. Founded by luthier Bill Meyer and artist Kat Kirby, the intimate shop features a selection of guitar art on the walls, giving it a great vibe. I hear they have art show events every few months, but I haven't been to one yet.
When I brought my guitar in, I got a good 15 minutes of one-on-one time with Bill, discussing my guitar, how I play it, my influences, taking measurements, how he could improve it. He's a really nice guy, knowledgeable and professional, and I felt confident that my axe would play beautifully when he finished with it. I picked it up only 30 hours later, and it played beautifully. He did a standard setup, fret dressing, cleaning. He also filed off some sharp fret ends and found a way to lower the action. (I had tried when I strung it with heavier flatwounds a few months ago, but was worried about over-tightening the truss rod.) My private instructor at school commented that he could tell my guitar felt more comfortable in my hands. I think I've been improving faster since then, but that could be a product of enjoying the feel more. That's the point anyway.
Pay Bill a visit if you're around San Diego. I'd be taking the rest of my guitars to him even if he weren't within walking distance.