RE: Colt Woodsman Recurve??
8.5" may be a bit high, but it won't hurt the bow--it will just cost you a little bit of performance.
String length depends on whether or not the bow was built to AMO specs--AMO states that the string length should be 3" shorter than the AMO bow length (under 100# tension).
The company (Colt) is the same as the firearms manufacturer--they had another company make the bows for them and put their logo on (like Browning did, and like some still do today).
Dacron only for the string (B-500 or B-50), 10-12 strands will work just fine, endless or flemish will do the trick.
Chad