Well, I fixed the felt problem. The felt was so old that it just sort of disintegrated into a cloud of wispy smoke when I touched it. I just rubbed my finger lightly over the fibers that had been sticking out.. sort of filed it down.
The sunroof open and close nicely except with a loud groaning sound at the end of each cycle; as it came to a stop fully opened, and the same sound as it closed. ..sorta like "metal/cable being stretched" sound.
So, for right now I'll use it sparringly.. seems like maybe some lube work might solve it.. but since my AC is now working, I don't have to have the roof open as much.. I really like it at night being open.. more a moonroof than sun.. without the air on at all. But, I've dodged a bullit and will keep an eye on it ..thanks to all.
1982 300D (266,001 mi.) looking and running great
1976 450 SLC
1982 Jaguar XJ6 (loved, but gone)