I am getting full output on ssb, so I would think the finals are good?Not having looked inside a Grant XL before, that part appears to be a voltage regulator or a final, and the insulator has come lose. It is a bad thing for that part to ground to the chassis, which is why that insulator is there, and it uses a plastic screw. The problem doesn't sound like a voltage regulator though, so it is possible that is a final, and the 1 watt you are seeing is coming from the driver, and the final is blown.
What is the part number on that?
Me too, especially since it was an ebay buy. Fortunately I have had pretty good luck with ebay radios, except for that one time, and the time before that...…. Now that I think about it, it's just another form of gambling.Glad you got it straight.