I've actually been keeping an eye on ebay, craigslist and other internet resources, as well as regularly checking all my local music shops. Unfortunately, I am not seeing RM50 Combos coming up that often. I learned subsequent to buying this one that Rob has one for sale, but even if I returned my amp and got my $379 back, I am sure that I would be well short of what I would need to scoop up that beauty. Believe me, if I had the money, I would do it in a heartbeat! I am going to give this amp at least one shot. I may be able to get GC to cover the service call, as long as it is not too outrageous, because they know that I can still return it and they would just have have it serviced anyway (by the the same guy I use-Jeff at JFK Electronics) in order to sell it.
I dropped it off at Jeff's shop today. Thanks to all of your input and research on this forum, I was able to give him some suggestions for areas to investigate; e.g., he does not have much experience servicing the MTS line and was not familiar with the arcing issue. He seems pretty confident that he can get the amp working properly. He is just about the only tech still servicing amps in my area. He has the local warranty service contract locked up for all the major amp manufacturers, as well as Guitar Center. When I mentioned the amp was designed by Bruce, he said, "Oh, great I know Bruce and can call him for advice if needed". He also said that the modded "Hi/Lo" switch appeared to be wired to a transformer.
BTW, I mentioned in another post that the stock Celestion had been swapped by the preious owner for an Eminence Maverick with a built in power attenuation dial. The dial was frozen up, so I emailed Eminence for advice on how to free it up and they sent me a brand new speaker at no charge! I won't forget that great customer service the next time I am in the market for a speaker! They said the plastic they used in the dials on the initial production runs was discovered to be prone to absorbing moisture, thus swelling and freezing up. They have since switched to a new material.