Rusty,
I know that open string buzzing (which I don't have) is caused by lack of proper nut action, but I'm fairly certain that nut height impacts other aspects of playability. Given the neck angle on a guitar, it seems reasonable to conclude that trying to lower action in the mid portion of the neck to compensate for a nut that is too high will cause precisely the problem I'm experiencing, something supported by the fact that a capo eliminates the issue I'm having. As I mentioned, the relief is just right and if I raise the bridge up, I'm doing precisely the opposite of what I'm trying to achieve.
Bill. It's a set neck guitar.