About that diode: My meter apparently won't check one properly. It shows a microwave diode as "open" in both directions, even though it is a good part. I don't know how it would do with a shorted one, since the only such microwave diode I have encountered blew itself to smithereens and required no testing!
If you spend some time looking on the web, you should be able to find some pointers on how to check the magnetron for shorts. If that seems to be OK, it may be worth the effort to get a replacement diode. Naturally, it will need to be one specifically for microwave use because of the high Voltage. If you have an appliance parts distributor in town, that may be a good place to inquire.
BTW, you should also run across some instructions about draining that capacitor before you do anything else! That sucker may not have enough storage to kill you outright, but it can sure knock you back into something hard that hurts!
Really, the microwave part of the circuit usually consists of the transformer, the diode, the capacitor, and the magnetron. If you can rule out the magnetron...