welcome to the forum fordfreak,
my suggestion for a mic is the Astatic 636. this is a noise cancelling mic and is also a high quality, good sounding mic.
noise cancelling means that if you are driving with the windows down, and talking on the microphone, it will cut out the background noise.
these mics are meant to be "close talked", meaning that you want to be right up on the thing while talking.
buy a 4 pin version and it will already be wired for your 29LTD.
there is lots you can do to your 29LTD, but it depends on your operating style, whether or not you plan to use an amplifier, and what things are most important to you.
if you want to "do it up", and dont plan on running a linear behind it; i recommend having the shop do a full alignment, the 2SC2999/schottky diode receive upgrade, and convert the final to a MOSFET.
yes, it will cost some money to have all this done, but again, its up to what you want out of the radio.
if you just want to "make it loud", and dont want to spend any money, you can just go inside the radio yourself, and turn up VR4, which is the modulation limiter adjustment.
its very easy to do, and all you need is a small flathead screwdriver to do it.
just turn the dynamike all the way up, and after turning VR4 all the way one way; look at the radio's meter to see if it moves upward when you say "ahhh" into the mic.
one direction turns it down, and one direction turns it up.
pretty easy to tell when you get it right.
VR4 is located near the transformer in the rear of the chassis.
do this, use the 636 mic, and you will have a good sounding radio.
as for what shop to use, look around this forum for the recommendations from other members.
you can pretty much guarantee that if a shop is bad, they will be bashed here.
if they are good, they will be praised.
good luck,
LC