The main benefit to the ground lift switch, and the galactic ground system that Kevin O' Connor talks about is that it makes the hum level on the amp a lot quieter, and it allows you to work in a studio environment or any environment where you have multiple pieces of equipment plugged into the same ground source without ground loops. For example, if you have 3 amps that you're using at the same time, and all three have a 3 wire AC line, the chassis of each will loop together through the common ground and cause excessive hum. Being able to lift the signal ground in one of the amps makes the whole system hum less overall. In order for that ground lift to work however, every ground in the amp has to be isolated from the chassis ground except for at one point. So the input and output jacks have to be isolated from the chassis, and all the circuit grounds likewise have to be isolated from the chassis. The actual circuit ground connection is made through the lift switch, and through a resistor and cap in parallel with each other to ground. This makes an AC grounding point only when the lift switch is lifted, and when in normal mode and lift mode, it offers RF suppression too.
Honestly I wouldn't bother. Its a ton of work, and it does provide some great benefits, but I'd only do it if you were totally rebuilding the amp like I did. If you just did the 3 wire AC conversion, and just disconnected the ground switch, and rewired the fuse and AC switch to the correct side of the AC line, you'd be fine. That said, it is interesting reading, and his books have lots of other great info in them. If you want to learn about working on and modding amps, his books are a good resource.
Greg