DON'T YOU DARE ROLL DOWN THAT TONE POT!! That's the twang-killer! :nono:
If it has a modern 6-saddle bridge I'd recommend changing to a bridge with 3 compensated brass saddles. I'd start there before changing the pickups, then change the pickups if you're still not satisfied. Swapping the capacitor from .047 to .022 is a popular mod. It won't make the guitar any brighter but it will make the tone less dark when the tone knob is rolled all the way down.
Action is preferential, whatever is comfy for you. I'd get the bridge pickup fairly close to the strings, make sure there's still clearence when you press the string on the last fret.