Emerald City ...and a technical question!

This amazing Wizard of Oz castle was a Christmas gift from my wife. It's a 1978 Summer Weekly Reader kit, including the model and a record LP.

This is actually a scanned copy, printed at about 80% of the original size. I've spent a couple weeks cleaning it up in Photoshop. The original is huge, so rather than trying to piece together sheets of card stock, I shrunk it to fit on 11"x17" paper. It's not quite done, but I wanted to test the fit before I went any further.

Which brings me to a technical question: I'd like to preserve the pieces in a PDf, but I'm not sure how to approach it.

- What PPI, dimensions, file size, etc. should I use to balance file size and quality? Should I make a PDF or just a folder of JPGs?

- The model is difficult to cut out without a guide, and I'd like to add an overlay of cut and fold lines. I've seen models offered both with and without cut lines; is there really a demand for this? I have Photoshop and Illustrator, which is best for this?

- I'm considering altering parts of the original that don't quite fit, or which could look a little more polished on the edges. I know I can do what I want, and that it isn't an historically important model or something, but do modelers prefer to leave a model as-is when preserving?

Thanks for any advice!
Michael Bean