[jzeferino]

Went ahead and aligned it. It works! 

But I can't get my mind off the frequency doubling. If I just set the signal generator to output a sine at 600 Hz and plug that to a standalone speaker I get the correspondent low pitch sound and I can confirm the frequency using the scope. If I use that same sine wave to modulate a carrier (say 455kHz, IF of this set), not only the scope reads a 1,2MHz sine at speaker terminals but the sound the set plays has a much higher pitch. I'm sure this will have an interesting explanation.

On to the final details:

• the dial cord disintegrated over time. I made another one from a knitting thread but it quickly came undone (not totally unexpected, I must say). Which kind of cords would you recommend?
  
• the speaker does need replacement as it gets stuck if touched ever so slightly. I was considering a readily available 4'', 4 Ohm speaker that would need some fabrication to be secured to this chassis. I haven't found a similar period part online.
  

Thanks!

JZ