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Withe the set running and no load applied you should see the following approximate voltages at the regulators terminals.
1 to 2. 1.07 vac
3 to 4 120 vac
5 to 6 5 vDC
7 to 8 69 vac
I suspect the issue with your set is that the 120 vac that's suppose to go to the regulator on terminals 4 & 4...