Hello Kitemare,
Yes if it is checking then you need to get the body down to bare metal. Since you have original paint on your car it is not very thick at all and getting it to metal will be fairly easy to do. All you need to do is sand it off with a DA sander and 80 grit sandpaper. Be careful with the fiberglass pieces though because you don't want any of the fibers getting messed up, your paint job won't be pretty if that happens. In fact don't use the DA on the fiberglass pieces, only hand sanders.
I would suggest getting a couple of books on how to prep and paint and decide if you want to go forward from there.
Getting the decal off depends on how far degraded it is. DO NOT sandblast the hood! You will warp it, I know because I've done it.
Goodluck!