Nice FC! While I'll say that I don't personally have leaf springs, I have read that the old leaf springs are longer than can be found new. A lot of people have just rebuilt the springs at a spring shop... it also appears that the bushings need to be rebuilt at the ends. Here's what one person did...1956 Flying Cloud - Axle
I can't remember who else showed how they rebuilt their bushings... but it could have been here http://www.airforums.com/forums/f437...ngs-44301.html
You then buy a new either straight or drop axle for the springs and bolt it on! Personally, I like the look of the drop axle, as the straight axle seems too "tippie toe" to me, but everybody has their own opinion... do as you'd like : )
Yes, I'd do it sooner than later.. blue means that there's been some heat damage done.. probably to the spindle too. You get new brakes and all with the new axle, so you'll be good to go!
Hope that helps.