Yes, you should re-foam the camera. If you live in the U.S., there is a product called "Foamies," which is sold in craft stores, such as Michaels. It's a couple of dollars, and you can probably re-foam about 20 cameras. Plus, if you make a mistake, you simply cut another piece.
Another benefit of Foamies is that the material should have a longer shelf life than replacement foam that you buy.
Then you need a hobby knife and a ruler.
I use a very narrow blade screwdriver to dig the stuff out of the back channels. And then make sure you clean all of the metal parts as best as you can with some lighter fluid and tissues.
I usually can clean and re-foam a camera in about 30 minutes or so. It's well worth the effort.