"Warm and Natural batting which if memory serves needs to be quilted every 8 or 10 inches would I tie about the same distance as the batting suggests for quilting?"
I don't think you need to worry about the batting, it is already stabilized by the quilting holding it to the front. Since it doesn't look like the quilting is dense, I think I would open the binding, and then remove as much of the old fabric as possible, being very careful not to break any of the quilting stitches or pulling on them (or just leave the backing on). Then I would replace the backing, but would only tie as much as is needed to hold the backing in place. I'm not a very experienced quilter, but if I'm understanding correctly, the quilting is to stabilize the batting, which is already accomplished by the quilting already done. The new backing will be held by the binding, so I would tie sparingly (just enough so the backing looks and feels "attached"). Hopes this makes sense.