1) Sanding and painting the boat is a lot of work, and if it's still the original gel coat you can actually restore the finish for less work than it'd take you to sand and repaint it. I just refinished a set of blue '78 hulls and they shine like new! Gelcoat is a better/more protective top layer than paint, and once you paint the hulls, you can never get the gelcoat finish back (it doesn't stick to paint).
All it takes is some 3M Rubbing Compound and a variable speed buffer with a wool buffing pad... that'll take all the oxidation off and polish them right up! (it might take 2 or 3 passes for the decks, mine did). $30 for the rubbing compound, $40 for a buffer at harbor freight and $20 for the buffing pad. Way quicker & cheaper than sanding & repainting.
If you have some really stubborn oxidation, you can use sandpaper... I'd start with 1500 grit, and if that doesn't work try 1000 grit or worst case 500 grit.
If you want the hulls to really shine, 3M Finesse-it II and a foam polishing pad can give you a pretty impressive finish! A coat of Starbrite Marine Polish with PTEF (sealant) and Wax will keep it shiny for years to come!
I've also re-done the gelcoat on my old boat, and I was able to just roll that on.
2) With regards to replacing the running rigging (ropes), there are replacement rigging "sets" you can find on ebay through slo sail & canvas, salt city sailing, salty dog marine, but you can just as easily replace the lines at your local Hobie dealer/sailor supplies store:
https://media.hobie.com/2010_archive/su ... eGuide.pdfI'd highly recommend replacing the standing rigging (wires) at the same time, since they're likely just as old as the running rigging and under much more stress/more likely to fail. You can get a complete set from the above mentioned ebay sellers for a good discount over what they cost individually.
3) Here's the assembly manual for the boat, it should help:
https://media.hobie.com/digital_assets/ ... Manual.pdf
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