Yes, that 5-watt 1K resistor is under-rated by my current understanding - I recommend a 10-watt rating.
The "very high frequency" noise pretty much confirms that you have some oscillation going on. It may well be that the smoking amp is drawing more current as an oscillator than it would if working properly as an amplifier, which abuses that 5-watt resistor even more.
For what it's worth, here is a section of the "History of S.E.X." from the current draft - no quarantees that it's right, I'm still working on it, but this is the section specific to the Rev1.1 or Rev 2.0 with deYoung transformer:
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The transformer and power circuit are satisfactory as is. However, if you are going to make any output upgrades, replace the 10uF/450v caps in the power supply with 47uF/450v or greater. I recommend 105 degrees C rating for longer life.
If you will retain the original output transformer, simply replace the 5-watt 1000-ohm resistor with a 10-watt 1000-ohm resistor, replace the 270-ohm 1-watt with a 270 ohm 5-watt part, and install grid stopper resistors at the power section grid, tube pin 1.
If you are not going to retain the original output transformer and circuit, remove the 1000 ohm 5 watt resistor and replace it with a piece of wire. Then change the cathode bias resistor from 270 ohms to 330 ohms 5 watt rating, and replace its bypass cap with one rated 25 or 35 volts. These changes will increase the available plate voltage, and reduce the plate current, for the best match to output transformers. At the same time, remove the feedback network (1200 or 2200 ohm resistor and 0.047uF capacitor) completely. Install grid stopper resistors at the power section grid, tube pin 1.
With the above changes, the TFA-204 will perform very well.
If you want the benefits of parallel feed (recommended) then today (April 2013) you can use a Hammond 158L choke rated 15 henries, 75mADC with the Electronic Bottlehead OT-1 as used in Paramount. These will fit using some of the original output transformer mounting hole plus one of the TFA-204 holes. Use the ones that get the iron farthest from the power transformer. An appropriate parafeed capacitor is 1.5 to 2.2uF. You should get somewhat deeper bass than the TFA-204.
Hopefully there will soon be a better alternative, with some new Electronic Tonalities iron. There will be an enclosed 60mA plate choke suitable for top-mounting, and an improved OT-1 as used in the Paramount, which can mount on the underside. These parts use the same mounting holes as the original output transformer and have greater bass extension and power handling.
The Magnequest BH-5 parafeed output transformer, or the similar TFA-2004Jr, is also suitable for installation under the chassis plate. The BH-7 plate choke has exposed terminals which would have the full high voltage on them, so it is not suitable for topside mounting.