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$700 for an RMS seems about right, and if he'll change the clutch for an additional $300 you should have it done whether yours is worn or not.
Yes, the oil will have to be drained to do the RMS.
Most people on the board agree that if it's not leaking badly (only a couple drops per day) then you can continue to drive it longer than a week. I personally think you should change it and the clutch sooner rather than later, but you will most certainly get other responses to let it drip, keep an eye on the leak to make sure it doesn't worsen, and then change the RMS when you need a clutch.
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