...unfortunately when AGC is on off, I don't have any meter deflection - is that normal? and a lot more static - the voices on receive are a bit louder though, as is the static ...
Exactly as expected.
The Automatic Gain Control is designed to keep the audio
level of received signals at a constant level. Whenever
the meter is reading, the AGC is reducing the gain. So
turning the AGC off will increase the gain of the receiver.
The S-meter is driven by the AGC voltage, so it doesn't
move when AGC is turned off.
...so now my question is what would cause that - an antenna relay (the omron 300ohm towards the back of the radio, on the bottom) that is going bad or is bad?
It sounds like the source of the symptom is that the
AGC voltage is getting charged up while in transmit,
or while switching between transmit and receive.
One quick test would be to see if it makes any difference
whether you transmit a signal, or just switch to transmit
mode without actually transmitting (CW key open, or no
audio on SSB for example).
Otherwise, details will depend on how the radio handles
the AGC functions while in transmit mode. If it uses the
same circuitry for transmit ALC, then the line might not
be getting discharged properly when switching. In that
case, reducing transmit drive to reduce ALC indication
might reduce the problem when switching to receive.
On the other hand, if the radio is designed to disable
the AGC circuitry in transmit mode, then the problem
seems more likely to be the AGC line getting charged
through a leaky switch or otherwise not getting shut
off properly. It is possible that some electronic
switching is not happening at the proper speed, so some
of the transmit energy gets coupled into the receiver
during the switchover. For example, there usually is
some intentional delay in the switching, and if that
isn't happening, the receiver might be turning on
before the transmitter is fully off, which could cause
such a spike.
I wouldn't expect a mechanical T/R relay to be the problem,
as that isn't as likely to be leaky in this way. But if one
set of contacts were used to mute the receiver, and
those contacts were dirty, that might cause it, depending
on the rest of the circuitry in the radio.