As promised, here is my restoration process for redoing the Form 1 headphones I picked up for less than $50 on eBay.
Part 1: Headstrap
When I first received them they were in typical condition. The head strap will falling apart and the foam pieces were long gone.
I began with replacing the strap. The pieces of leather I used were from BMW seats that had been dismantled.
This is what the strap holding clip looks like
The new strap needed four holes similar to this:
I created a pattern from the old strap and began cutting
Then I set to work on the foams that touch the ear. They were like these (telephone foam pads for hearing disabled)
I felt that the foam would provide a comfortable surround and allow the sound to be uninterrupted in getting to my ears. My only complaint, as you can see in the photos is that the foam is charcoal grey instead of black--only a minor complaint).