Hey Kevin,
Happy New Years.
I haven't done the mod that removes the lower tape guides so I'll leave that for those who have experience with that.
Regarding the use of Teflon tubing on worn lifters, IIRC, the tubing I use is the FEP Teflon which I purchase from McMaster and Carr. There are other formulas of Teflon but I found that the FEP is a bit more compliant which makes friction fitting it on the lifters more secure.
The size I use is ID 3mm and the OD is 5mm (I think).
http://www.mcmaster.com/#tubing-%28made-with-teflon-fep%29/=kxeo6xOn my machine, there is no problem with the tape touching the lifter while in play and since the lifters are between heads, that shouldn't be a problem unless there is a need to lower the head height of the erase and/or the record heads for the tape guide removal (which is possible).
Be aware that these Teflon "sleeves" do wear rather quickly so you need to check them every few tapes you rewind to be sure that the groove doesn't get very deep and I rotate the "sleeves" every once in a while then pull off the headblock to replace them once an un grooved surface can't be found. I rotate them with a pair of needle nose pliers away from the area that the tape contacts them.
I cut the tubing to size with a razor knife just short of the length of the lifter shaft. There's a black rubber (?) spacer almost inside of the machine so push the cut sleeve against that. If the sleeve seems loose, squeeze it a little to close the inner diameter a bit and it will keep the sleeve from rotating when you don't want it to.
Also, be careful when push on or pulling off the sleeve. You don't want to bend the arm that the lifter is attached to inside the machine. It seems pretty strong but you don't want to find out the hard way. Replacing those arms would require the purchase of a parts machine!
I keep meaning to take one of those lifters to see if a ruby or pyrex sleeve can be bonded onto it. I'm sure it can but at what cost?
For now, I'm content to live with the tiny hassle of fooling with the Teflon sleeves.