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Jordan -
I hope your Capehart restoration is going well.
First time I powered mine up, the same thing happened. I caught an unpleasant whiff and heard some sizzling and pulled the plug fast. The chassis on its side, I saw a drip, drip, drip of hot wax hitting the bottom inside edge of the chassis. Traced it to a bubbling wax cap, looking just like your photos.
In my case, the capacitor itself wasn't generating any heat, but the adjacent half-watt resistor was glowing red hot and I burned my thumb the hard way. Please check to see that the same thing's not happening to you, or you might stress or smoke your new Sprague Orange Drop too.
Just thinking out loud, hope it helps.
- Kirk
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