Just a quick update... I received and installed a nickel plated bottom cap, a new fuse kit replacement, and a new button earlier today. So everything below the bottom of the battery is brand new and polished with Flitz. So far, it is working very very well! I've been using it for a little over 3 hours now and been checking the the button and fuse posts occasionally. Everything looks the same and I don't seen any signs of the little black circle or spots developing.
I guess I'll just have to pay extra attention to make sure I don't over-tighten the telescope tube in order to avoid creating a short... I'm really happy that I decided to get these new parts and start from scratch. I think it was the only way. Thanks for all your help, I think we are finally on the right track.