I've never seen a PAL head in real life, only the drawings in the assorted manuals that Tony's lathe site has got. I'm guessing that one has to get the centre pulley and motor out of the way, followed by the spindle pulley and its bits, then unbolt the rear pulley from its shaft, remove the shaft and eccentric out of the top and finally manoeuvre the rear pulley through the front part of the side door holes.
It will come out, since they got it in, but there is probably a way that works and many ways that don't. The Mk1 head has got a definite knack to assembling it as well, but after the first half dozen times it becomes intuitive!
As to the splines, is it the spindle splines that show the wear or the drive bush's internal splines? In either case one might need to make a new drive bush, but in the former case, one would need to either make a new spindle or use a surface grinder, shaper or mill to cut back the good parts of the spindle splines until they were thinner, but all the same width. Then send both bits off for heat treating.
A spring loaded backlash eliminator might work, but one would need to find space for it, possibly by making a spacer plate between the head and the pulley box.