The type of grout you use typically depends on the size of the grout joint. In a 1/8" grout joint typically unsanded grout would be used. In a larger joint joint, like 1/4" sanded grout would be used. My experience is that new grout typically sticks to old grout, but it's best to remove as much of the old as possible within the area you are redoing. And remove any grout that is not completely solid.