Hi guys,
Sorry it took so long to get back in touch and respond but I wanted everyone to know what I found and how I repaired it just in case someone stumbles upon this post and has the same problem.
You both were right! After posting and watching 'John's Arcade' videos I learned Ian Kellogg actually had quality cap kits so I ordered a kit for the power supple since the voltages were off and it wouldn't respond to adjustments.
After re-capping I powered it up and the sound was now working but the picture was completely different, though still scrambled and pixelated. As suggested, I removed all the ROM's, I cleaned the sockets with Deoxit, and lightly burnished the pins and re-installed.
Plugged everything back in and it works like a champ!
By the way, before finding Ian Kelloggs' cap kits I had ordered a kit and flyback from another supplier (TRBR) for the K7000 but I haven't install it yet since it's working so well. That's the next weekend project! But from now on I'll contact Ian first. He was a lot easier to get in touch with and no need to mail out checks, so you can pay electronically. Plus nice quality parts!
Thanks Ian - and for responding!