[Herald1360]

If it's any help, the degraded insulation round the dropper isn't in itself a problem- air is a pretty good insulator and rigid wires don't move. They're also safely inside the cabinet anyway. Dress them a bit to maximize clearances but they don't have to be replaced.

Unless underchassis appearance is paramount, it's much easier to replace the wax capacitors with modern, smaller ones by snipping the leads close to the old capacitor bodies and using the leads to make small loop tags to attach the new capacitors to. This also avoids the pain of trying to unsolder and unwrap the old wires without damaging anything else in the process.