buckskin, i know that you mentioned this already, but while you have this test setup still together, please confirm that the RX/TX light on your broken radio does or does not change color when you key the mic on it.
This is key to know.
when you said that the broken radio was not showing any indication of any signals getting in, you mentioned that the lights on the broken radio were dimming slightly when you were speaking into the good radio.
you were wondering if this was some sort of indication of the broken radio reacting to the signal.
most likely it is not.
did you have both radios connected to the same power supply?
most likely what you saw was the increased current drain on the power supply during modulation peaks was "sucking" current away from the broken radio, causing its lights to dim.
right now it sounds like you have a dead radio, and the reason your problem is hard to track down is because you are saying that the RX/TX light is changing color.
every bit of tech savvy that i have is telling me that you are mistaken about the RX/TX light and you have a dead radio that lights up, but nothing else works.
LC