You are not going to like my answer and comments.

Give up trying to grow Fescue. It will never work no matter what you do.

You have already given the reason why because you said two things.

1. My soil is acidic.
2. Neighbors Centiweed is taking over from all sides.

Centipede will only grow where nothing else will, where the soil is extremely acidic and poor fertility

Quit fighting nature, plant Centiweed and be done with it. You will never be able to raise the PH of the soil high enough to grow anything other than Cemtiweed.

Ok, so what should i do to help grow the centipede quicker? I have used a lot of lime in the past partly because its cheap and i thought it was working...

Is it even worth laying centipede seed? My only concern is that the store bought stuff turns out greener or browner than the natural centipede taking over my lawn. What should i use for fertilizer?

For fertilizer you drive down the street and find an empty bag in a trash can and drag it around the yard in spring after it greens up. Lime will do you no good, you need dump truck loads, not bags to raise your PH. With Centiweed you do not use lime.

All you really need to do is wait until spring after the grass greens up, loosen up the soil, broadcast the seed, and water it in. Keep it watered until germination.

Centipede ain't called LAZY MAN GRASS for nothing. You drag an empty bag of fertilizer around the yard in spring, and mow it once a month whether it needs it or not.

Kidding aside do a simple search for establishing Centipede, and maintenance.

http://www.turffiles.ncsu.edu/PDFFiles/000019/Centipedegrass.pdf

Where is the centipede? It is a fat, flat grass with stolons. All I see is dead/mostly dead fescue.

http://www.ppws.vt.edu/scott/weed_id/ereop.htm

In NC, you can certainly grow fescue anywhere. It might take a lot of effort, but you can grow it. It requires a decent amount of water and fertilizer and those needs go up the sandier the soil is. You would also need to adjust the soil ph to get into it's growing range.

Of course, if your neighbors have centipede growing nicely - why do all that work? You can plant centipede - water infrequently, mow infrequently, and fertilize once a year.