I figured I would awaken a sleeping thread, since I just finished re-covering the seat on my 76 550. It was AWFUL! I mean, it turned out OK, but the whole project (replacing the foam, shaping it, and then covering it) was the least favorite thing I've done on my project so far, and I am just happy it's done. I've been putting it off, but when all was said and done it took me a total of 3 hours, including some trial and error fitting the foam.
The best advice was from gregimotis: use a hair dryer. In my case I used a heat gun on low (the kind that is used for covering RC model aircraft with monokote). This really makes it easy to pull things tight. I started in the middle, and went side to side, pulling REALLY tight as I went, and trying to keep things even. While it took a lot of time and care, it turned out well, and for the cost of the cover ($50), a can of 3M 77 ($9), and some free foam, I have a like-new seat.
Here are some pictures: I used some (blue) firm foam that I got from a boat cover/upholstry shop. Small scraps, so they gave it to me free. Also, I asked for some scrap underpadding foam from a carpet store. I cut out the rotting foam from the seat with a hacksaw, trying to keep things flat. Laid 2 layers of VERY firm underpadding. Then I cut, fitted, and glued the foam in place (lots of trial and error). Sharpie marker and some thin cardboard templates helped. Trim off the excess with scissors. I used 3M 77 spray glue on both sides, let it dry for 30 seconds, then pressed together. I used some sort of thin fabric padding from inside an old sofa cushion to go over everything. I figured this would help even the transition out between old foam and new.
While not PERFECT, I am very happy with the end result. Just take your time when you do it, and that hair dryer trick really made things easier.
-Ron