Chad Adam Browne wrote:
Here's a cool pictorial a guitar tech I follow put up regarding refretting.
http://avhguitarrepair.com/repair-blog/refretting-an-unusual-les-paul/
The one comment he made regarding glues I thought was pretty useful in regard to your enquiry:
" I will use hide glue in the slots for extra security. CA and Titebond-type glues are also frequently used (epoxies are not recommended), and I still use CA for securing fret dresses and quick fixing loose frets, but on whole refrets I prefer to use good ‘ol hide glue like Gibson did. It does hold the fret very well (you see very few pre-80’s Gibsons with lifting frets), is easily removed with heat, and because it dries to a very hard, crystalline consistency, it does seem to transfer string contact vibration much better than the other typical glues used (which = better tone)."
Now I don't know about better tone as that's a bit of a suspect claim, but from what I gather Hide Glue is stable, easy to remove and easier to clean out of the slots if need be than the alternatives.
Gibson used fish glue. Its not definitive, but some of the experts are adamant.
[edit: This may have changed in the 60's, but hide glue will cool and gel very quickly in contact with a metal fret. This makes it hard to use effectively.]
<insert reference here or no one will believe you>.
Ok, Ok, If I find time I'll add some links. ?
I really don't like the idea of using CA glue, epoxy or anything like that. Rosewood does not need any encouragement to split. Permanent glue is reckless and wrong. I'm digging in here.
Also, there's a lot of cr@p written about tone, but this is one I really believe. Imagine a a hard brittle substance between fret and wood as opposed to some rubbery damping along the whole length of the fret.