Go with the wool, for all the reasons stated above. Rather than alter a tails coat you might want to consider going to Marlow White (www.marlowwhite.com) and purchasing a Navy or USCG CPO mess jacket. In the long run, for a total of $219.00 + shipping, it may prove to be the better buy.

Finally, if it were me, I'd skip the epauletts, but replace the buttons.