The problem was in between the last IF stage and the video detector. THe 26mhz video carrier was very weak, which explained the crummy picture but good sound. I replaced some out of value resistors on the last IF stage and touched up the 26mhz coil for greatest carrier signal without overloading.
The picture is smooth as glass. Problem solved. Pics can be seen on the updated thread:
http://www.audiokarma.org/forums/sho...d.php?t=135772