I'm playing around with a similar situation. The action isn't bad, just not as low as I'd like. One solution might be the Hipshot Supertone 3-point
http://store.hipshotproducts.com/car...t_detail&p=264 , but I'm also a cheap guy.
One thing I have been cautioned about is keeping all three mounting points close to level on that bridge. Get it tilted and it starts to work as a lever to pull the inserts out of the body. That's not hard to deal with - just pull the insert, paint the inside of the hole with super glue and shove the insert back in - but it shouldn't be necessary.
So - yes, loosen the strings and lower the bridge. Keep it level, don't tilt it.