Heres more of an update. Its had plenty of time to cool down...
Turned on the switch and started filming. Nothing happened so I stopped recording. Tried booting off a 6.0.5 disk, but it strangely got stuck at Welcome to Macintosh (PSU or disk issue? Could be related to the errors), and then the drive was quiet... Turned it off and back on again, no issues, booted to rom. Tried the disk, and it had files on it? Ive booted my portable off it, so I know its good. But then, it happened. The screen expanded and kind of shrunk down again. It did this a few more times within the next minute, and then was stable again. So Techknight, you're correct, it seems like a power supply issue. However, it does not seem to be a matter of "warming up" now... Unless it takes longer than a few minutes to warm up. Its an 80 degree room, so I dont think there is too much to warm.
Does this still seem like a transistor issue? Is there something else I should be looking at? Should I just swap the whole power supply?
DO NOTE: We are living in a very old house right now (Building a new one, so its temporary) that constantly trips breakers when the toaster and coffee maker are on at once, for example. There are NO GROUNDS in this house, which I did not know until recently. There are "fake" grounding 3 prongs. Can this be the root of the issues? No ground or bad electrical supply from the house? The lighting flickers when i turn on my modern computer. I can try bringing it to a friends house and see if the issue goes away.