Hi kreamkrackers
I had a c-section at 36 weeks (though had a small baby - 4lb 12oz) and a VBAC 2 years later.
I don't think that the stretching of the scar will be an issue, as long as you have the classic 'bikini line' scar. That bit doesn't really get stretched, which is why they cut down there these days, rather than right down the middle of the bump like they used to do years ago.
I would be more worried about your desire to have an epidural. I did look into this quite a lot when I had my VBAC. If you have an epidural, you obviously can't feel anything at all. This means that any unusual pain which might be indicative of a scar rupture (very rare, but obviously also very serious) would be masked. An epidural also increases the likelihood of you needing intervention and possibly another c-section. Personally, I decided not to risk it, although I have heard of epidurals being offered to women having VBACs, so it's obviously a possibility. In any case, you should probably discuss this with your midwife/consultant at the time.
Judging from what you've written it sounds as if you are quite scared of pain. I wonder if, in the intervening period, you can do something to change your attitude towards pain, so that you are able to view the pain of childbirth as positive pain, which you need to feel in order to bring your beautiful baby into the world. (Just typing this, I feel a bit ridulous and lentil-weavery, but it worked for me, honest!)
Alternatively, if you are freaked out by the idea of pain and by the notion of a baby coming out of your vagina, why not opt for an elective section instead? Opting for a VBAC should be a positive choice, because you really want to give birth like that, not something that causes you fear and tension.
Oh, and you should also talk to your consultant about why you needed the section at 29 weeks last time, and how likely it is for that problem to recur in a 2nd pregnancy. This may affect your chances of a successful VBAC, anyway. (I was lucky, as I had a non-recurring problem the first time round.)
HTH.