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Did the cord have the famous "green goo" forming and bleeding around the plug and interlock? I've never seen a cord flame out from the goo but I have seen them sparking very slightly and it looks like interference on the picture. I clean them but it comes back eventually. I have soldered cords to the back of the pins on some to be on the safe side.
As for the vertical, it may be a resistor opened or went way up in value. My RCA KCS166 did that and I finally couldn't adjust the height anymore. Once I changed three resistors it was fine again!
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