we never earthed monitor frames until new regs came in the early 90's, certainly not on woody cabs. I think you should try linking the earth to the frame though as it takes a few mins to do
i do not see how that psu link could cause any issues unless your psu itself is on the blink, its a tried and tested mod that has been done on switch modes since mid 80's and in general always cleared this interference issue
Little Update,
I tried a connection from the monitor frame to FG on the psu and I think the interference was actually worse, I noticed the voltage was a bit different at the pcb with that at the psu so I took the monitor ground back off, re installed the jump wire fro FG to GND and adjusted the voltage slightly holding the black lead on GND at the psu and testing the voltage at both the pcb and one of the 74LS174 chips vcc. what is an ideal voltage at the pcb/logic chips? I think it's was around 5.08V its a little higher at the psu around 5.2V from memory I was tired last night when I tried it, forgot to write the value down,but the good thing is the interference has gone.
Now since adjusting the voltage slightly it appears to be fine, the glitching has stopped, but after about 5 mins of playing the screen will glitch again briefly, what could be causing this issue? do I need to up the voltage slightly, not sure it's a good idea as the 12V rises too what is a safe limit for the 12V?
Could it have anything to do with the Green Mylar caps on the game board, I am only just beginning to learn electronics so not sure of the terminology are they decoupling caps, what is their purpose? they are marked as .0015k50, I did buy some a while back to replace them but have misplaced them, what would be a suitable replacement ceramic maybe? what value are they?
Thanks again for your help,
Much appreciated :-)