That tool is to compress the brake shoe link pin spring so you can remove/replace the pin lock. Makes it an easy job but not necessary. Remove the locks carefully because you want to reuse them. They are made with soft malleable metal and bend easily, but also break. They are available from some vendors and also on Ebay occasionally.
If you need to reline the shoes find a brake specialty shop and they will take your shoes, media blast and paint them and replace the lining. Be sure to ask them to use the softest lining material they have. If you replace the linings you should have the shoes arced to the individual drum. To do this they would need the drum, as well, and don't mix up the shoes with another drum.
The bearings are lubricated by the diff. oil. It is a good idea to use wheel bearing grease upon assembly so they are not running dry before the diff. oil sloshes out to the end of the axle housing. I lightly lube them and I don't think high temp is necessary.
Ideally, you would have, or make, an axle nut adjusting tool. You can use a punch to loosen and remove the lock nut and axle nut but on reassembly you want to be able to set the bearing preload correctly and that is difficult to do carefully with a punch.
If your seal is not leaking, and looks intact I would leave it alone. Be sure the area of the spindle it rides on is not corroded. If it is corroded I would try to reduce pitting with emery paper and then replace the seal with a new modern one.
Good luck,
Kent
Last edited by Lightholder's Dad; 05/22/2019 10:26 PM.