I had this exact problem on my E12 and received a lot of help from some very nice people on this list and finally solved it. So I'll share what happened with you.
The resistors take current and heat in the first and second speeds of the controller and should stop heating in the third speed. In order to achieve the third speed, the circuit between the solenoid contactors and the centrifugal switch needs to be closed. You can manually close this connection by pressing the power pulse switch. If you hold this switch down after achieving second speed and you go into third speed then the problem is in this circuit. It is either a worn switch in the speed control, a defective 2A solenoid connector, a defective centrifugal switch in the motor, or a bad connection. After testing all of the above, it turned out in my case to be a bad connection at the Molenex connector in wire # 36. This wire runs from the motor's centrifugal switch to connector 2A. I just patched around it and it has worked just fine since. Make sure you use the correct schematic for your machine and test until you find where the break is occurring.
If I can be of any help, let me know.
Matt O'Brien wrote: