dan75th

Nope, it's just glue to help keep the larger components in place a little more securely in case it gets bumped around. It provides an additional anchor point so the solder joints aren't bearing all of the stress. You should be fine.

+1 on the SCSI2SD. Maybe I'm missing it, but I don't see a leaking cap in the photo. If you're referring to the white substance between the components, that's glue, not electrolyte. Has the power or the video given you any issues to suggest leaking caps? The SE is one of the more bulletproof compacts and not nearly as susceptible to leaking cap issues as the SE/30, Classic, Classic II and Color Classic.

The Radeon 7000 is also a good card for the Beige G3's and can usually be found a bit more easily and quite a bit cheaper than the 9200.