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The loop is part of the antenna tuning circuit of the radio and must be connected. Be sure the loop has continuity. Did you replace all the paper caps?
C1B will adjust a station near the high end of the dial to read at the right number on the dial. Then C1A should peak reception of a weak station near the high end of the dial. Be sure to use a very weak station. There's nothing much on the "Special Services" band any more so maybe not worth doing much with.
If you have a signal generator the radio ought to be aligned per the procedure in NostalgiaAir for this set. If not, and if nobody has played with the IF transformers before you, then peaking C1B and C1A above just listening for max output ought to bring the set around.
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Reece
Perfection is hard to reach with a screwdriver.
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