Guitar Tuning Problem (Or guitar Problem)?

Your saying that as you move up the fret board, ie from 2nd to 3rd, that the note goes down a semi tone? That is physically impossible... The only notes out of place seem to be the sharps... I think you are reading the tuner incorrectly. Where it says 2nd fret and G* (sharp) it is really going to be a G (flat). Either that or you have a physically defying guitar.