Well, looks like i can answer my own questions-'cause noone else has!

The shafts that the handles are on are striaght. There is no peening or any thing else. Once the handle screw came out, I used a slide hammer with a small hook bit. They are on very tightly. After some movement up the shaft, I was able to get a pair of pliers around the shaft under the handle and tapped the pliers with a hammer until they came off.
I put the spring (question #3) at the end of the retractor tape and it seems to work OK. Maybe a new spring with a little more guts would be better.
As far as moving the hinges up, I'd still like to see if anyone has done it.