If you are going to change to oil rather than ATF clean all the old stuff out, oil & ATF don't mix well and can emulsify.
ATF is fine, I use it as fork oil in a couple of my bikes.
Maybe think about some new springs first though. They do 'shorten' after that many years.
The air valves are a help with adjusting the sag, without rider there should be about an inch of sag in the suspension with the bike off stand. With the rider aboard a couple of inches sag and an even amount front and rear.
You will only want to use a hand pump and low pressure gauge. The Max I would put in them is 8psi. It is only a small volume needed.
When you reassemble the forks lube the new seals up before sliding them on to lubed up fork legs.