It's looking like it is a mechanical problem and not an electronic problem. If the MHz dial only goes to the left edge of 0 that would explain why the dial shows 1 MHz higher than the actual frequency. I don't have my FRG-7 handy to check but it's possible the MHz drum has slipped on the shaft or the angle drum drive needs alignment. Check all drive components and set screws.
73 Roger VE7LB