It's puzzling that the resistances seem to read OK but the voltages don't. Usually the resistance readings are way off in concert with the weird voltage readings, like 1&2 would read shorted or open. There is a slight possibility that you are getting 120VAC at terminals 1&2 but one of the fine wires that wraps around one of those terminals and goes into the transformer coil is broken near the terminal. However I'm afraid it seems most likely that the transformer is toast.
