Hi!
Actually there quite a few updates regarding this. First, the primary issue was the video filter was turned all the way to the detent (i.e. MAX) which I think was squashing any signal I was trying to apply to the 8559A. The second issue is a gremlin in the display power supply section (of the 853A) which was causing the display to not power up intermittently. Then a fuse popped in this same section.
After that, everything seems to be working reasonably well. The calibration is in question now, and there is an odd behavior that I have noticed which is signal < 3GHz (so from Band 1) appearing when the 8559A is switched to the higher bands (2-6). I believe this is because there is no YIG tuned filter in this unit, and so the lower frequencies are not filtered out. It makes picking out the correct signal a bit more challenging, but nothing terribly difficult at the level that I am using the unit.
I have also calibrated the display using the method you described, as well as I did an adjustment to the reference level and frequency display. I am able to measure a signal's power to a reasonably decent accuracy (at least for my needs) as a result of this. The manual mentions a 250MHz cal signal, which surely is not generated (that I could find) by the 8559A. I ended up using a HP 8642B and checking the output level with a power meter to verify that I was feeding a -10dBm signal to the 8559A. I am assuming that it is a -10dBm signal, as the service manual makes no mention of anything other than it is 250MHz.
As for the fingers falling out of the switches, I have not had this problem (thankfully!) but I had come across a link where a fellow re-built his switches using pieces of brass:
http://www.orionsword.net/Electronics/TestEquipment/HP8559A/HP8559A.htmlIf you look in the service manual (which I can send to you if you don't have it; it should be about 440 pages), there is a functional description of the switch positions and which lines are shorted for each position for the reference/attenuator knob, and I would imagine the same exists for the frequency/div knob.
Good luck and post pictures/comments if you get stuck and I'll see if I can help
