Damper Rail Relt Replacement

[Leaozinho]

I recently acquired a 1976 Mark I that needs quite a bit of work..so expect to be hearing from me  .
One of the first things I want to address is that bottom notes were not sustaining correctly. After looking inside the piano, I noticed the ~6" of felt had become misshapen and detached. I'm wondering:
- What kind of felt can I buy to replace this?
- If I am replacing this part, would it be better for the action to replace the entire upper strip as well?
- What kind of glue should I use?
- Should the felt be totally flush with the rail edge? You can see on the second picture that my felt is not.

Here are two pictures: