Heathkit IG-102

[bandersen]

It looks correct to me. The "internal modulated AF out" puts out the AF signal used to modulate the RF.

[N2IXK]

I agree, that's how it is supposed to work. In the "Internal Mod AF out" position, you should get an audio signal out of the jack, of 1 kHz or whatever frequency they use.

In the "Ext Mod" position, you put a signal IN through the same jack, and modulate the carrier with it.