So after I stripped everything out it looked like this:

Much better - and I could work with it. After watching a YT vid with Seymour Duncan himself installing these pickups I saw some neat ideas about installation - so I copied the first one about neatening up the wiring:

Heatshrink does wonders - then installed the pickup and switch to check clearances:

Fit like a glove! Installed the pots and oriented them like the diagram:

Cut the wiring down to fit, tinned all the ends of the wires and my contact points...
At this point I must apologize - I could not snap photos and solder.
And no, I didn't burn myself....much. Just touched the gun once. At least it wasn't the liquid solder!
*drumroll*

TADAH! The only thing I was pissed about was the old knobs did not fit on the Fender pots. Took a trip to Guitar Center yesterday, drooled over the stock, and got some Fender knobs to go on the shafts of the pots:
