If the hydrolastic hasn't deflated I'd leave well alone! In my opinion it's a far more robust system than the later hydragas, mainly because there's no gas to escape. Apart from the occasional weepy joint or valive it's either fine or broken.
The clutch is fairly easy to do in situ, although taking the engine out does give the opportunity to give both it and the engine bay a proper clean. Being a mark 3 there's more scope for jacking the clutch end up as it doesn't have the box section on the nearside inner wing to stop it. Just don't go so far that the manifold to exhaust joint fails.
Really useful advice. I believe (I'd need to look back through the thread) that the suspension is fine, except one circuit has a dicky valve. IIRC it had fibreglass or some other crap stuck in it.
Is it easier to remove the whole front subframe as a powertrain combo or is removing the engine+transmission on its own easy enough?