Well, I'm taking baby steps on this project because my wife seems to think it's more important to finish painting our newly-finished basement. Women have the strangest priorities!
So... the consensus seems to be Red loctite. Don't get me wrong, I really appreciate your comments and you have all helped me many, many times in the past, but the FSM doesn't say to use anything at all, I have blue loctite and have always had good results with it, so I'm going with that. I've cleaned all the black hardened stuff off of the bolts with a wire brush and they're ready to go.
Pilot Bearing. To replace the pilot bearing, I supported the flywheel off the floor with a couple of wood blocks, drove the old bearing out with a hammer and punch (alternating sides to drive it out evenly) and carefully tapped the new bearing in with a hammer and then with an appropriate-diameter socket to set it in its proper place. The seal on the bearing goes toward the transmission in case you forgot to look.
Rear Main Engine Seal. I also replaced the rear main engine seal. This seal is easily accessible if you take the flywheel off and it can be had for $10-$25 depending on quality, so I highly recommend replacing it when doing this job whether it is leaking or not. The procedure I followed is:
1) Drill two small holes in the exposed surface of the seal 180 degrees from eachother, being careful to stay in the center of the seal material and not nick the crankshaft or the engine block. Also, use your left hand to counter-balance the pressure you're putting on the drill so you will not shove the drill bit deep into the engine as it breaks through the other side of the seal.
2) Insert a screw into each hole. I used deck screws because that's what I had on hand-- you'll want something long enough to follow step 3. I threaded them in enough to catch well, but not too much.
3) clamp vise-grips on one of the screws. Insert a prybar between the vise grips and the block and pry the seal out a little bit, then move the grips to the other screw and do the same thing. Work carefully from one side to the other until the seal comes completely free.
4) Insert new seal and drive into position being careful to keep it straight. I used one of the plastic attachments from a cheap seal driver kit I bought for $5 from Harborfreight. You could use an appropriately sized PVC clean-out cap or PVC pipe if you wanted.
Well, that's as far as I got. More later and hopefully I can get my act together and post some pictures (I have been taking them).