Am i right in assuming that i can make this good with some work or is it past it.
Its a 2002 Squier Strat
Are you sure it’s not just dirt?
You’ve tried a cloth with warm soapy water?
it looks like it is mostly dirty to me - but pictures can be hiding the detail. Look at Justin’s guitar some time. 
it looks similar.
The nut looks low. That is a bit more effort if you determine it needs replacing. You’d possibly need files you are unlikey to have. See the setup video I posted in the previous question you had on this guitar to determine if the nut is too low.
edit: also, they actually scallop the fretboard on some models or custom jobs. so no, it is not time to replace it. Many people like the feel of a worn-in guitar.
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Not yet, ive only just taken the old strings off. Its been sitting for 10 years in a gig bag.
I have noticed the frets are rusty too
Those frets don’t look too worn.
Should polish up nicely with some fine steel wool 
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It is time to give it a good clean as Michael said, I repair and make guitars so you need a nice sharp razor blade or thin Stanley blade carefully get rid of the dirt and grime then a bit of wire wool 0000 grade and finish off with a touch of lemon oil job done my friend but be careful cheers HEC 
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The fretboard will look great after cleaning!
I prefer naphta in a case like that for the fretboard, and then use some lemon fretboard oil like Hec recommended. And some frets polishing like Brian and Hec also said.
I like to watch Stewmac videos on guitar maintenance questions
All the best,
Dominique
If you’re going to use steel wool then I would mask off the pickups first.
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that cleaned up nicely!
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Polishing eraser, Dremmel and polishing disk etc all work too.
Looks good John and yes mask off I forget and just assume people know these things so cheers Paul, I only use a very little amount and I am particular, but take your time and get right up to the frets I’m sure you can see the difference already, I like to keep it hands-on when cleaning can’t do much damage but all advice is generally good advice on the community, I have had some horrid fretboards and after a good clean and scrape they have came up great its nice to do it yourself as well so happy cleaning cheers Hec 
Even the frets look alrerady so much better!
Definitely do this and do it well. Otherwise there will be metal shavings all over the pickups forever!
Had anybody tried Scotch Brite pads instead of steel wool? The white pad is equivalent to 0000 steel wool, and wouldn’t leave metal shavings behind.
Anything like that would work to some extent
I use Micro Mesh Sanding Pads
@markr31 Haven’t tried them in this use. If they are the ones I’m thinking of, they do disintegrate with use. So definitely better than metal shavings, but probably still a good idea to protect anything you don’t want gathering the shedded material.
Particularly with the magnetic pickups.
Will this interfere with the tone or is it a ‘5 o’clock shadow’ visual aesthetic? 
Probably creates a relic-ed look. Played the guitar so much there are metal shavings on the pickups.