Sorry Teresa - as I tried to make clear, if I lived close to the site I would have my concerns too. You certainly seem to have done your homework and if your structural survey evidence is as strong as you make it sound I would be surprised if the application will be approved.
A Conservation Area does not restrict new housing as you suggest, it is there to apply stricter planning controls to help preserve areas that are deemed to have special architechtural or historical interest. They mean that planning permission is harder to come by but not that it is impossible to get it. If the application doesn't properly address issues of size, design, materials and space between buildings then it will fail.
In terms of size I still maintain that the scale of the proposed development would not alone cause the application to fail as it is not bigger than other properties both in Manor Mount and surrounding roads in the Conservation Area. 1 1/2 Manor Mount is one of the smallest structures in the area and comparing the two alone is not what the planning department will do. What little the application gives of the proposed design and materials looks to be in the right ball-park but there isn't a lot to go on. I am surprised that, in a Conservation Area, they have applied to fell trees that dont appear to be in the way but again, permission can be given for tree works in a Conservation Area. Space-wise, there will definitely be a reduction in space between the proposed development and 1 1/2 Manor Mount but again not to levels below which are common in Manor Mount and the surrounding roads.
From my (limited but not non-existent) experience of planning legislation and applications I think the application in question is pretty light in detail given that the site falls within a conservation area and has been previously refused - so I'd be surprised if permission was granted.
I do wish you good luck and I do understand your concerns. But I repeat my earlier sentiment that people should make their own, informed decisions (one way or the other) rather than just offering a basic, well-meaning objection - after all, those are useless to you in the eyes if the planning department when they make their decision.