Quoted from JOESCHALL:Thanks for the detailed reply. I have replaced both the driver board and the loop board, and I have tried adjusting the pot without the loop board mounted to the PF. But I'll keep troubleshooting with what you said in mind. I may try the hard-soldering route as well.
Okay - some things to keep in mind: (And I only bring this up because in the past, I've had to deal with this in my career. You know those squares or circles you see on the roadway in front of traffic signals? Some railroads use them as well. Yeah, same detection technology here.) I'm not saying that these would be enough to set off the board here in SS, but it's issues I've run into before -
Depending on the sensitivity, some things you think may not interfere can cause issues - including a person's fingers simply holding the loop board. A dirty board, or a scraped solder mask (green coating on the board) can cause issues.
I am ALSO assuming that the LED is a sensor LED and not a +12v or +5v indicator LED. I don't have this game in my collection now, and I don't remember having to ever mess with the board, but the manual says that the LED is representing the output and not voltage present. If you have a 3rd party board, though, I would double-check.
The cable connecting the two will be BEST if the two conductors are twisted and not loose. Help minimize noise.
The cable connecting the loop board with the driver board has no polarity. (Because the 'loop' board is just that, a loop.)
Honestly, I would check your cable connecting the two boards - likely there is a loose/intermittent connection on the IDC connectors.