... The wire that looks like it is labeled R8 may be a fusable link on the input side of the transformer or a current sensing link used to trip the breaker. The little thing that went may be one of the TVS devices everybody keeps talking about.
Al
I haven't studied the circuit in great detail but I reckoned R8 was a current sensing link as you mentioned. The location of the blown component is labelled C1 so I assumed it was a capacitor, I think it's part of the filtering for the AC from the transformer. If it was my transformer I might try replacing that, but since it's a low value transformer, and the owner has agreed to buy a higher rated unit for a nominal price from a friend's stockpile, I'm not going to put any more time into it.
Thanks again for the comments and ideas.
TVS= Transient Voltage Suppressor