Comments on Line: XLS Extra is okay but VPC is a lot better. XLS extra is a pain to splice because it has this bogus piece of tracer cloth inside. Oh yeah thats the part that makes it Extra as opposed to plain old XLS which I happen to like for most everything but halyards. VPC is a great compromise for low stretch on a budget. Certainly fine for all halayrds on a cruiser.
On my new boat I am replacing all running rigging and I am using VPC for the spin halyard, Endura Braid (dyneema core) for the main halyard, and v-100 for the genoa. Leave the cover on though, vectran hates UV. What I do for furler halyards though is to just buy enough of the good line to make full hoist and a few turns on the winch. Then put a reeving splice in the cover and use 3/16" XLS as a messenger for hoisting a dropping. Dont bother with the butt splice, just leaves you with a bunch of line taking up space in the cockpit. A good reeving splice will let you tie the messenger on with a bowline and will run right through all the sheaves, easy cheesy.
As for the sheaves Emerald is right you will want to at least clean them up and idealy replace. I would not bother with bearings though. Get some new sheaves from
www.zephyrwerks.com, Ed Louchard, with Delrin Sheaves and Oilite bearings. Great sheaves and only like $30-$40 each.