So quick update. Went out for a bit tonight. First thing I did was Bill's suggestion. With power to the machine I manually engaged the armatures on each contactor. Both engaged their respective motors, so seems like the contactors aren't the issue, some good news, one less thing to worry about.
I then spent some time trying to sort out the transformer wiring. Doesn't help that it's late but I'm struggling here. Based on Alex' comment that the S wire shouldn't go to the fuse I tried to move the S wire to the 0v terminal on the upper portion of the transformer. I couldn't make it reach without pulling it completely out of the way and snaking it straight across from the middle contactor. It looked like it had been buried in the way like it was for a while. I do see that the diagram makes it look like this is the correct connection though, kinda scratching my head here.
I also tried to track down an R1 wire that Alex and the schematic indicate should come after the R wire exits the fuse. No go there either, only wire "1".
It was also pointed out there appeared to be a 2nd wire behind the "2" wire coming off the fuse. There is. It's unmarked but jumps back to the left contactor and then the middle and is sistered up to the "2" wires coming off the bottom of each. I tried to high lite the path in blue.
fuse2 by Josh Falcon, on Flickr
Anyway, I'll take another crack at it tomorrow with fresh eyes. I know I'm missing something but I'm at a loss at the moment.