Ok, I think my clutch is going out.
I am not totally sure though.
In all gears, when I mash the gas pedal it revs really high then slowly goes down as speed comes up.

In 4th and 5th gear, when at idle with the clutch in and foot off gas pedal, I can dump the clutch and the car stays running, it doesn't kill it.

I've done a thorough search and all i found was to stay away from the centerforce clutches because they really aren't worth the money because we rarely will see the high RPM's that the centerforce clutches are made for. I also got that I can get a new clutch from NAPA, and that they also carry a HD clutch as well.
However i am somewhat intimidated to doing the job myself, as I have never done anything like this before. I got a couple of quotes and they range from $925 to $1100.

Also, do I have to replace the flywheel if I install a new clutch? Each of the shops I got a quote from had a *NEW* flywheel in each of their estimates.

I have 2 repair manuals, a Haynes and a Chiltons.
The Chiltons manual refers to a special tool J-39207 to disconnect the clutch bearing from the pressure plate. Is this tool really needed, is there a substitute?

Many Thanks in advance.

I put a new clutch in a '91 Trooper and didn't have any special tools. However I soon realized there were diffrent size bolts so I made a cardboard template of the bolt pattern and placed each bolt in it's respective hole (template) as I removed it from vehicle. I didn't find it to be a daunting task but it was a knuckle buster.

Its not hard, but like was said, time consuming dirty and you need some strength to bench press that thing back into place since the t-case is attached. I think the special tool they cited is for pull-style clutches. If you have a push-style clutch no special tools are necessary. Instead of a tranny jack I did my clutch once with an assortment of ratchet straps to lower the tranny down. A few through the shifter hole and around the trans and a few across the frame rails supported the trans. You do not need to replace the flywheel just have it resurfaced. Should cost you $45 at an automotive machine shop. I used capclutch.com for my clutch parts. OEM Japan brands and cheap. Just go slow use your brain and you will be fine. If possible, do it with all 4 tires on the ground for safety and minimize how far you have to lift the trans on reinstallation. You will need PB blaster for exhaust components in the way.

In both of my manuals, it states to use an engine hoist to hold up the motor when you disconnect the tranny, is this really necessary?

Yes. I would not try the job without the engine hoist. You can perhaps block the front of the engine up once the transmission is off, but the process requires that the front of the engine be lifted, in my experience. Because of the placement of the engine mounts the balance is way forward without the weight of the transmission. The engine will tip forward, raising the angle of the rear. It's hard enough benchpressing the transmission back on when the engine is pointed down at the rear. With the angle wrong, you just won't get it on. Then there is the question of the transmission bolts. There are a couple across the top of the transmission which are a bit tight on clearance. Lifting the front a bit helps here too. Mind you, don't lift it too much because you're probably stressing the engine mounts in the process.

I wouldn't try to pull the transmission without a jack. That thing is heavy.

you can also use a jack to tilt the engine towards the rear

Yeah, just use a jack under the oil pan with a block of wood.

I'd suggest looking for a cheap tranny jack. I rented one that was good up to 1100 lbs, but it was just too big. Harbor Freight has a little one on sale lat time I checked.

It might also be a good time to replace the rear main seal and transmission input seal.