Ned,
Welcome to the forum. Its nice to have you. If you could do us a few favors to make it easier for us to better serve you, number your questions as some of the pro's can answer some questions but not all, and we can refer to the same question without all that typing. Can you add your location to your profile? That helps us give materials and methods recommendations.
1- provided the tiles are well adhered you can tile over that with the proper thinset rated for that type of work. Double check all the tiles, one at a time, remember that your new tiles will only be as stuck down as your old ones.By 1968 they weren't still using asbestos tiles were they? I was still in diapers so I wouldn't know...
2- You can add the ditra or such, no real need unless you have other issues. If you have the money in your budget, its a very nice touch.
3- no, its not a de-coupler. if anything, the installation acts more like a bonding agent. Electric floor heat is the most efficient way to heat a room. We install it here in south Texas. But then again, our state motto is: "Raise your thermostat, freeze a Yankee"
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Paul 1
For when DIY isn't such a good idea...
Houston TX area Kitchen & Bath Remodeling

http://CabotAndRowe.com
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