> Would be nice to know how much i'm sitting on.
What you're 'sitting on' is your grandfathers drums that he entrusted to you. I'm sure he gave them to you hoping that you would play them and later pass them on to your own offspring. I'm a grandfather of four, trust me, I know these things.
To answer your questions:
1. Excellent, professional quality cymbals and drums. The components of that kit are all of the very highest quality. The Gretsch drums are rare not only for what they are, (50's 3-ply Jasper shells assembled in the old Brooklyn factory) but also because of the very rare wrap/finish on the kit. Not many, if any kits like that one floating around. The drums are from the Gladstone era at Gretsch. Look up Billy Gladstone and do some homework. You'll be surprised to learn about what you have there. Most drummers here at VDF would kill for a kit like the one you are 'sitting on.'
2. Yes, the heads on the drums are the worst ones possible. Go with Remo Emperors on top and Ambassadors on the bottom/reso side. I own a set just like yours, 50's Gretsch, and it is one of the best sounding drum sets I own.
3. The kit and cymbals are worth whatever a buyer is willing to pay. Your best bet, if selling, is to use ebay and put them up for auction. You will be surprised at what that kit can potentially bring in. I'll tell you to your face right now... If you sell them, you'll never find another one like it ever again, you'll never be able to afford to replace it, and later down the road, when you think about what you have done, you'll live to deeply regret ever having sold them.
That kit will only increase in value with passing time. Sell your shoes and underwear before you sell your grandfathers kit. Like I said, if you do sell them, you'll be sorry you did later down the road.
John