platefire, your pin number connection summary looks correct, to be clear, "#6 terminal goes to Switch 2 for Phantom Power/DCV power supply" isn't exactly correct. #6 goes to the phantom power switch. the switch is a DPDT, phantom power is actually on the other side of that switch (top part on sch). The side the original TR1 sec-7 is connected to is circuit ground for an LED indicator for phantom power. So connect the #6 secondary lead to ground somewhere, either ground at that switch, or close to the ground of the first gain stage (similar to PRR's recommendation to for the E connector).
That might help you find the circuit ground actually..
as far as chassis grounds go, studio gear is has to be delicate when it comes to ground loops. 100's of patch cables, each device grounded differently,etc. it is possible that chassis ground is not circuit ground at all. look for ground-lift switches. if the input and output are both transformer coupled, the circuit in between can just have a ground relative to itself. chassis to circuit ground could be an AC coupling capacitor and resistor in parallel (or nothing at all??)
If your friend wants to take advantage of the 1:7, a DPDT can switch between 1:7 and 1:3.5. like PRR pointed out, 1:7 would be better for mike inputs, and 1:3.51 is better for line inputs. Note the Lundahl title "mike transformer / DI transformer". The 1:7 side is designed for mike, the 3.5:1 side is designed for DI. In a DI application, Instead of the secondary going to to a
tube grid, it would connect to a 1/4" instrument level jack (thus providing the impedance match for inst. level : XLR line level).
Does your friend use this as a mike preamp? or just as a line-level preamp?
Also, R3, R5 and R63 seem counter productive for low-Z mike inputs, SW3 is an attenuator, .... what is the turn ratio of the original transformer? I'm thinking its 1:7 or 1:8 ? and the SW3 is (-)pad for using the device with line inputs??