Hiya Mick.
I have huge sympathies with your predicament and you've hit the nail on the head as to why so few D35s get anything other than a basic service to keep them going. It's an absolute balls ache stripping the gun down. I've not been inside a 35 but having done so to a 50 that trigger takes a bit of fiddling to get right so finding all your efforts have resulted ina gun that wont clock is the ultimate sinking feeling. As you know the later modular triggers are a lot easier to work with.
Being butally honest though your pain and suffering will help others through this article by taking away some unknowns and giving some good information on achieving given results so you are doing a good deed.
I think you are right about the ditching the leather seal. To me with airguns I ether buy a gun to keep it 110% original so it's a factory example of what was produced (I've always GOT that concept), but at other times if I have an example of a gun a little less than pristine then this is fair game for some serious tinkering and improvements. It seems to me your gun falls into this category. Leather is a durable material and has stood the test. But to move forward and get the best potential from a gun you need to move to modern materials and gain the benefit of better consistent results. After all we have ditched mineral oil in our cars this long time for oils with friction reducers built in that reduce wear and add longevity lower emissions etc. To improve a gun leather needs to be parked up. I've had many debates with a fellow member here about his leather fetish and refusal to accept modern materials in older guns
So thank you for your pain and suffering in the name of giving the rest of us some knowledge to undertake similar mods to our own guns. Though each gun is an individual unit, your results would give a strong indication as to general outcomes. For me the M&G guide has to be ditched in any improvement to remove twang. Is there merit in gliding the piston whilst at it? In for a penny philosophy comes to mind......
Hope you keep going and well done with the results thus far.
Dave