I'm doing something very similar; I'm on a large Perl project that I'm trying to make intelligible. I'd add the following pieces of advice:
Write automated unit tests. (See Test and Refactoring.) Run them frequently.
Don't try to put all of the HTML into templates in one gigantic effort. Work a bit at a time, interspersing your refactoring efforts with adding new features to keep your managers happy.
Make sure that you get buy-in from your fellow developers. It does little good for you to be fixing old code when new code is being written with embedded HTML.
Write automated unit tests. Run them frequently. (Okay, but it's important!)