Pleased to report the machine is functioning fairly well

LOADING INSTRUCTIONS AND STEPPING THROUGH THEIR EXECUTION

I used the Load mode to place various instructions in memory, the Load IAR button to select the location when it wasn't sequentially after the last entry, and the Single Step mode to to walk through execution slowly. 

First I entered a short format branch instruction, validating that it did its job properly. I then added the long format bit, which converted this into a MDM (modify memory). I saw the machine step into the I2 phase to fetch the second word of the instruction. It then moved to the Indirect address IA phase as expected. 

A short format Load Accumulator instruction was next, which did indeed deposit the target location's contents into the ACC register. I changed it to a long format and watched that perform properly.

Having data in the ACC, I inserted a Shift Right instruction to move the bits five positions to the right, which it correctly.  

I have seen the addition and subtraction working just fine, as it is used to develop the effective address for instructions, taking the current IAR and adding displacements. I threw in a logical AND instruction which produced the expected results. 

GETTING ALL THE LIGHTS WORKING ON THE DISPLAY PANEL

I swapped in good bulbs and worked to remove oxidation on some other bulb contacts, getting more and more of the machine's lights working as far as Lamp Test is concerned. The remaining bulbs that are not lighting are a few in the IAR, SAR, and SBR registers, four of the interrupt levels, the Carry and Odd conditions, the I1 instruction cycle state, the TC state and one or two others. Maybe 20 not working out of 156. 

It is always possible that some of the bulbs that don't light are due to a failed SCR instead of the bulb, but I have not yet found any that are definitely caused by the SCR. 

It is also possible to have a bulb light from Lamp Test but the driving logic gate doesn't turn it on in normal mode. I have not yet found any that are failing like this.

EARLY DAYS IN THE RESTORATION BUT NO INDICATIONS THIS WILL BE DIFFICULT

This seems on par with the state of other IBM 1130 systems I have restored, where substantial portions of the machine work correctly and the defects are relatively few.