All these switches have been bent by someone over the years and I thought I had re-bent them into place (then ruined everything again as stated before). Would it be worthwhile to replace switches with brand new ones to guarantee longevity? I have cleaned the switch that is arcing, but doesn't seem to have done anything. If a switch has gold contacts, if they are worn, can those also effect the switch?

Well yes, but if the switch is arcing then it has been activated elsewhere.. if its arcing and not closing then the coil that controls the relay isn't pulling in. So the switch isn't the problem.. control coil is.. or.. the mechanics of. Make sure plate pulls in and releases OK