Upon reading your initial post, my first thought was that your needle is MIA. But then you said this,
"I scaled the Tracking wt back to 0.75 grams and the record played but one channel is distorted."
Which channel?
Assuming that one channel wasn't distorted, how could the tip be MIA? It's possibly damaged or chipped, but it doesn't make much sense from a distance. Why would it track at .75g, and not 2g? If you put the cartridge on the record w/o moving, does it look straight when viewed from the front?
I think you might have a problem viewing a Gyger II with a hand held magnifier. If left on the arm, around 10X or so, is about as close as you'll get. I'm not sure what the limit is, but focal length gets very short. If you have a camera and photo program, I suspect you'll be able to accomplish as much.
Could the arm adjustments be way out of whack? Did some wires get disconnected? If you want to post photos from your PC, use the little box directly under the B.