You really need to do an archive search, as this has been beaten to death before. But in brief...
Stock system has 35 year old, non-barrier hoses. You should replace them all. Stock condenser/evaporator/fan will be fine. You will need to replace the drier. Make sure it is R12 or r134 compatible, as per your final decision. Stock system uses flare fittings. New compressor will most likely have o-ring fittings. Hoses will thus combine both types to hook up properly at both ends. Under dash expansion valve should be removed - not a fun task - and the trash screen within it checked for debris. Some leave it out, but that is there for a reason. Consensus seems to be valve can be used with 134.
Flushing system components with proper solvent - mineral spirits will do - and blowing clean with nitrogen will be insurance for system trash that can ruin your new compressor. Flush kits can be bought on eBay or from the AC vendor mentioned below.
NOTHING works as well as R12. It is not illegal to use or service R12 systems. Just illegal to make it any longer. Supplies are far from depleted...eBay is full of it. But finding a shop that will service it may be difficult. I bought my own used $1500 Robinaire recover/recycle/recharge unit for $100 from my local LM dealer.
Do not buy a rebuilt or China knockoff compressor!!! Keep it new Sanden. Hose kits can be bought from vendors, but make sure the fittings are right for your decision.
Addition of a high/low pressure safety switch in the system...in-line or on a drier port for that purpose... is advised. Wilkinson has an upgrade under dash evaporator with less heating coils and added coiling coils. NOT cheap - about $600. You can also upgrade to a 3 speed fan blower motor, fairly cheap but either of the above will need dash removal.
Bear in mind r134 is being banned in Europe about 2013, and surely in the USA/Canada not far behind that date. So you will have the outdated refrigerant problem with either choice in due time.
Great AC forum sponsored by a VERY well priced retailer is here:
http://www.autoacforum.com/categories.cfm?catid=2My vote is stay with the R12.
Others will no doubt support r134. In any case it is a major task to do it all properly.
And 'properly' is a key word here.
Larry