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Also shown close up in another photo. The terminal strip overheats due to a big 10 Kohm 10 watt resistor that never should have been installed there. I have moved it to just above the chroma circuits, and away from the sensitive tuned coils. It can be seen in the full view photo just left of center. It looks like a cement rectangle. In the later photo, it is missing because I moved it out and away from the Chroma Circuits. and you can see where I replaced a burned wire with a new white wire.
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I had the same issue with this big power dissipating resistor on my Deluxe chassis. It is one of the major shortcomings of this set.
I ended up dividing the resistance: I replaced the burnt terminal strip and the 10k with an 820 ohm 10 watt in the same position to duplicate the original wiring and to minimize wiring capacitance changes. I wired in series with it an outboard 9.1K 20 Watt resistor well away from other components. In addition I had to replace the wires which were burnt and insulation crisp.