It's definitely a hardware issue not a software issue as a clean install of 3.1 exhibits the exact same problem.
ok but that fault it is not related to caps
it is related to the buggy 1.d1 motherboard and bad cias
the 2 big caps 1000mf near the modulator are to smooth the 5v line and the other smallest near the rf modulator 470mf is the one for composite video
nothing related to that bug
the other small caps are for different functions like 2 of them to smooth the 12v line 1 to smooth the 5v line in the IDE port,other to smooth the -12v line and other 2 are there for the sony chip
to confirm this:
try for example the game "arabian nights" which uses cia timers....
if the game works correctly with music....that's ok
but
if the game crash or works without music...you have a big problem