Would suggest you replace the machine heads and as to the buzzing this is probably the top nut ,which if you feel confident in doing you can remove it and insert a shim below it to raise it slightly or do the same as the machine heads and replace with a new one.
If your not sure how to replace then i would suggest you put it to a guitar luthier. There is a guy at the top of newton hill in wick who repairs guitars his name is Willie Mackay not sure of his address or number but someone on here will.
As to the electric's you can get pick-up's that fit in the sound hole so no need to carve up the guitar, Will they affect the tone,sound of the guitar yes to a greater or lesser degree dependant on what amp you play through. This would be the same if you used a microphone instead of pick-up's.
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