I think it is just looking for clarification. Does it look like its installed correctly?
Should there also be a umbrella seal over it?

Looks like it to me

http://store.440source.com/All-Teflon-Valve-Seals-11_32-stem-_-530-OD-guide/productinfo/101-1049/

OK so if one were to change them out, Heads on or off and is there a puller of some type that removes the teflon type seal?

There's no puller, but there is an installation tool and a thin plastic cap for the valves that prevent galling the new seal

You might want to replace those with the newer Viton valve seals avaible today Teflons use to be the hot ticket years ago, they don't keep the oil out of the combustion chambers like the newer Viton seals do

Being they are the teflon valve seal and the guides are machined for them, Do I need to change the guides now so the Viton type seal will work?
And again, should I take the heads off to change these out? I pretty sure IF I have to change out the guides that YES the head has to come off...