@Shadetree Mechanic - you can also research this thread...
https://www.worldwidedx.com/threads/old-school-president-grant-dx-pc-999-board.152505/
On the 3rd page, you'll see this...
Pay attention to the Left graphics, they show orientations of the Resistor, Capacitors and The Diode.
But notice too, they don't all use the Diode Resistor pair EXCLUSIVELY - this is important to know and to test your ideas for and with.
The 560 ohm resistor - sets a "mid-point" for Carrier and Audio - so the audio's own varying waveform can remain centered on the AM Carriers' "Bias" so the envelope is symmetrical if the Carrier and the Audio signal see a preset Bias - something it can work from.
When you use the Diode, you change the way this mid-point is sensed and regulated - it can show more POSITIVE shift in Audio signal - the negative peaks are compressed or even removed - you've heard this numerous times before - and rightfully so - you're affecting how the AM regulator can even regulate the Carrier and Signal together.
So it's why I caution you on the push the diode and resistor and neglect the 560 ohm resistor - that resistor plays an important role in the recovery of carrier bias - process.
So as you work this, get your screen shots - and see how this NPC mod can butcher the signal - pay close attention to the symmetry, for as you will see, you can LOSE audio signal "loudness" to obtain a forward power Swing in the meters. The others listening may or may not hear the loudness change, but will see the swing effect in their meters - to do the NPC RD (Resistor Diode) combination right, you will also need the 560 ohm resistor - in combination with the Diode/Resistor combo - in PARALLEL with.
See above.- note how the 560 ohm can be subbed with a 470 ohm along with the diodes 100 ohm - in the lower left box - the diode is straddled with the resistor - so the Diode still acts as the one way valve, but the way that resistor is placed across (parallel to) the diode the entire series resistance is closer to the singular 560 ohm resistor you're modifying - it allows you to recover the portion of the signal and power to restore bias as if both the sets were installed and working.
In the original discussions on CB Tricks about these concepts - the 560 ohm resistor was always kept in circuit - but somehow in time - this mod interpretations seemed to have forgotten a step or part or two - or a combination thereof and made a mess of it.
CAUTION: *** - if Used, Remove R266 - use it or 470 ohm or any combination of Resistor, Diode - Resistor parallel as long as 560 ohm "return" is satisfied