Sounds right - the Sandens are pretty popular (and make good OBA units, I hear - but Yorks are better...)
I know it was the Sanden SD505 up to at least 1989 - all four of my XJ's (1987-1989) have that unit. The 709 is probably about the same size - but the higher displacement and extra cylinders probably make for a more even pressure source.
Also correct on the nature of the "S" and "D" markings.
A side note - most compressor clutches (the part that usually goes awry,) come with 30-60 days' warranty when purchased alone, but significantly longer when you buy the compressor and clutch together. Also, the price difference is usually less significant than you'd think, and you'll probably be coming due for hoses and such anyhow - this is probably a good time to think about a retrofit anyhow. A retrofit typically wants to change the hoses and accumulator, with everything else flushed out (the oils for R12 and R134a are not compatible.)
I remember seeing decent prices on these things (mid-$200's for compressor and clutch, IIRC) at RB's Automotive - a hotrodder's supply house. This was for the SD505, and I don't recall if they have the SD709 - but their catalogue is worth having in its own right...
5-90