:Sounds like in the process of recapping you managed to short a shortwave band oscillator coil with the broadcast-band one. Look for solder drips or bare hookup wires around the oscillator coils that might have gotten pushed into contact during the recapping operation, especially in the area of the band selector switch.
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:Agree with CV. The radio needs a loop antenna, that's why it sounds bad while doing an IF alignment.
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:If there are no screw terminals on the chassis for external antenna/ground connections, you can assume that they are on the missing loop antenna unit. The SW connection would have been a "pass through" that likely connected to the external antenna terminal. A loop antenna would not have been very effective for shortwave reception. A schematic of the set should clear up all ambiguity.
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I recommend that you try to locate an example of this set that has the loop antenna intact, then get a detailed description of its construction. That should enable you to build an antenna that approximates the electrical characteristics (and appearance) of the original quite well.
A more labor-intensive and partially experimental approach would be to examine the antenna circuit that has to resonate with the loop over the broadcast band frequency range. Knowing the tuning cap capacity (from the schematic), you can calculate what value of inductor in fractions of Henries would be required to achieve resonance. Armed with this info, you can reverse engineer the missing loop assembly and select the variables (loop size, turns, wire diameter) to achieve the target inductance value.
Once you have a working loop antenna, you can tackle the other problems in the set. If the set won't accept an IF alignment, you have problems with the IF filters. Since you bypass the radio front end totally when aligning the IF filters, if the IF won't peak, the problem cannot be in the antenna or mixer stages. If you can peak the IF filters but can't successfully complete the "front end" alignment, you have a problem in the antenna or oscillator circuits. An oscilloscope or frequency counter can help you sort out the real issue. If you rewound the oscillator coil, that's a good place to look for a problem- if the LO can't track the incoming antenna signal with the proper frequency offset, the IF stages will reject the mixing product.