"Should I replace the rear seal with the rope while the axle is out????"
YES!!! by all means do!
So much for being "Blonde Proof"-LOL
"Also no one has yet to answer part of my original question which was if replacing neoprene seal if you still need to loosen the other caps to allow the crank to drop a tad like you would when replacing the rope type seal."
Yes!!! It makes things go a lot easier and you can get a "sure" fit when it goes back together.
The rope seal is by far the best bet. Don't use a jack to push it into place. You could push it to tight and then it will leak for sure.You want to let the crank push the upper seal into place for the seal to fit perfectly. If you have an old reground crank (don't we all?) then there will be some amount of wear on the crank (from grim) where the seal goes. The neoprene seals are made only to one size and can't swell up like the rope seals to fill the gap.
I know, from experience, that this can be a miserable task at best, but if done properly you shouldn't need to do it for another decade or so.
Oly in Oregon
Rest in Peace1945 GMC COE Victory Truck
1953 Willys CJ3B
1955 Chevy 1st series 3/4-ton
1958 WIFE Last series
Never say "Whoa" in a mud hole