I cannot give you a clinical diagnosis over the internet unfortunately, especially without more details of your history, exam and results.
Like wise I'm not sure how bad the MRI spine is - the thecal sac is the bag of fluid around teh spinal cord that protects it. Effacement means that the disc is indenting into the fluid space but does not appear to indent the spinal cord itself. Whereas sometimes this can still cause symtpoms is certain positions, per the scan report the spinal cord is not damaged or compressed. Therefore, it may be premature to attribute all your problems to a disc.
Other possibilitues include an immune mediated neuropathy (such as CIDP), drug/metabolic or nutritional related neuropathy or monoclonal protein realted neuropathy. Ask your doctor about wather these fit in with your test results and whether testing for these problems, such as analysis of spinal fluid and more blood tests, are needed .
I say see the neurosurgeon and have whatever surgery they recommend and don't mess around, you may end up like me!