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The fix you describe with the line cord coupler should be just fine, provided the cardboard liner extends a little beyond the ends of the metal clamp, preventing any contact of a sharp metal edge with the cord insulation.
You're right, the device capacitively couples the line cord for use as an antenna. Probably on the order of 50pf or so--plenty to pass a VHF signal in the FM100 band frequency range.
The 50C5 should work fine in place of the 50EH5, IIRC. The 17JK8 might prove to be more of a problem subbing out.
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