The 1/2 power switch works great. NO redplating or resistors going into meltdown. Like most of you guys who have the DC 30s or the 36 Watt TMB w/ 1/2 power switch, you know that it doesn't drop in volume that much. But it does change the string attack and generally the way the amp reacts to your guitar. I can see why Ken didn't include it on other models of the Liverpool after Ginger. It's just not something I would call a great feature. I will be installing my Variable Voltage Regulator in this amp before it's all said and done.
The line out feature works great and I can see this as a plus. It functions very well and is connected to the speaker out so you are getting all of the sounds the amp has to offer not just the preamp. This also means that if you alter the volume of the amp you will also alter the volume of the line out. As long as you set your volume on the amp and use your guitar volume there should be no noticeable change in signal volume at the line out jack.
Last Saturday I went to a show where American Minor played and Bud Carroll, their lead player, used the Junkyard Express and one of Richie's 18 Watt 2 x 12 combos. He would use the 18watt for his rythyhm / melody parts and would switch to the Express for his lead parts. This sounded fantastic. I can see how someone would want to build an Express and a Liverpool to do the same thing. Throw in a A/B switch and you would have all anyone would need.
I'll try and post some pics of the completed build later on tonight. Richie and I are also going to try and get some clips made as soon as we can get to the studio.
Thanks to everyone who answered my questions and especially Mark Abbott for his insight and help. Mark you da man!!