Yes, 40 year old seals probably quit sealing 30 years ago...
Actually, they are not that hard to rebuild if you are even a moderate mechanic... the only special tool needed is maybe a slide hammer to pull the front pump. Some say you need a spring compressor, but I was able to improvise something.
Get a good kit like this (
$179)
www.coperacingtrans.com/product_info.php?products_id=326&osCsid=hehswnign
And I would upgrade the valve body to something like the Cheetah Auto/Manual (
$289):
http://www.summitracing.com/parts/tac-17676/overview/
Also, deep sump pan, and better converter.
The rebuild kit should have instructions, and there are lots of good articles/videos/ books on the web. Keep everything clean, take your time, not that hard, and you will save a grand.