I'm calling this project done.
After cleaning the heads, demagging the tape path, getting the pinch roller out of the machine and giving it a good cleaning, this thing is recording and playing back nicely on all 8 tracks, levels are pretty flat. And it sounds good. Was using Jeff Buckley's "Everybody Here Wants You" as a test track. Let the haters hate...I think it's pretty amazing how good these tiny little tracks can sound.
This 238 is 100% operational and functional, nice to look at, has the RC-88 remote to go with it, and has a brand new complete capstan motor and servo assembly...not a refurb but brand new direct from Teac.
Done.