Line voltage 119.7 The feet I have are appx. 7/8 high (not my feet) the one's on the base. I think I have enough ventilation.
OK, I have to agree, 119.7 is fairly close to the design target of 120v! Guess that's not the problem. It was worth a shot though. IIRC, new Paramounts have been going out with the beefier MJE5731A (note that it mounts backwards from the MJE350!). Check the Zener string for correct voltage at turnon, before the shunt reg kicks in. There have been a couple incidents where a Zener shorted and put extra stress on the other components.
As dmannnn noted, if the '350 has overheated it will likely have a discolored appearance.