Yes, it was a strange one. It seems that it is much more frequent that the fuse for the 9VAC blows. But indeed the transformer had its primary coil broken.
The Datassette is not a very useful device, as it manages to be even slower than the 1541 disk drive without any fast loader.
Recordings made in C64 or C128 mode are interchangeable: you can record a C64 BASIC program on tape and load it back in C128 mode. If it is not using PEEK&POKE it will even run.
The same is true in opposite direction, as long as only BASIC V2 commands are used in C128 mode.
I did have a hickup: initially I was not able to load files in C128 mode. My first fear was that the repair was not 100% successful. The loading process in C128 mode would show "Found file...", but then, after pressing SPACE, it would load forever, much past the end of the file. I tried this on another C128 I have and due to finding the same symptoms, I concluded that I must have been doing something wrong.
Turns out that in C128 mode, tape operation is a little enhanced compraded to the C64: pressing SPACE will NOT load the found file, but instead keep searching for the next file (which I did not have on my test tape). In order to load the found file, the "C=" key needs to be pressed!
Conclusion:
1) Strange repair - did not find any reference to the 9V transformer being broken.
2) Datassette is not particularily useful at all, especially when you have a real 1571 (as is the case in my C128DCR) and/or a PI1541.
3) But it definitely gives you a big retro-feeling! I am considering storing some big programs on tape, just to be able to load them from tape: the nostalgia of having a loading process take 5-10 minutes is something REALLY retro in our modern fast paced world, where we need high speed SSD in combination with smart OS that actually loads files BEFORE we ask them to, so they instantly open. No wonder people are having mental breakdowns, with all the speed that is expected from us!
Regards,
Vitor