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I just replaced my 25 splin with a 28 spline. The local rebuilder gave me the same story that it needed to be replaced. Prior to this, I had driven around for 10+ years in my 67 mustang. (someone in its past had replaced the original top loader for this 25 spline version) The reason I pulled it was to put a 5 speed in the mustang, the rebuilt toploader, with 28 spline is going into the cobra.
I only replaced it because some guys "in the know" said I needed too. For your question #1, it cost me about 900 dollars to replace the main shaft, as well as a few gears, synchros and seals for the 28 spline. The original yoke and shaft are just paperweights now.
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