So when I had the thing apart, I rashly decided to disconnect everything that connected the tape drive, rollers, etc. to the rest of the PXL. Then I tested it and it still seemed to work, so I removed it all.
What remains is a lean, mean PXL2k that outputs a directband video signal only, which I usually run to a Hi8 camera slung over my shoulder. The new casing is an old shampoo bottle from the trash, with the bottom cut out and everything wrapped in black electrical tape.
FYI: There was a heat sink off the main board that attached to the metal frame of the tape drive mechanism. In order to offset the chance of any damage due to intense heat, I inserted a thick, folded piece of aluminum which draws heat from the sink and spreads it out.
I also have little windows cut into the body on the side opposite the batteries which exposes several pots (potentiometers) that when rotated, adjust the signal processing. This allows me to change things like the speed and degree that the PXL image will adjust to extreme shifts in the lighting conditions. I can also adjust the contrast and general light sensitivity. The pots are only accessible when the tape drive is removed. I believe the pots are pre-set in factory and not intended to be adjusted by consumers. Some pots may affect the audio, but since I have the audio disconnected, I haven't figured out for sure. When (and if) I ever get the functions of the pots all clearly identified and can confidently indicate their proper adjustments, I would be willing to post this info.
-joe