I noticed that C6 is 0.22 uF. The required values are: 0.1uF +100%/-60% for standard current limit, 1.0uF +100%/-50% for reduced current limit and 10uF +na/-50% for increased current limit. Changing the capacitor may not fix the problem, but it will determine the operational state of the TinySwitch. I am concerned that the bulk capacitors are getting hot. Check to see if they are not over stressed by measuring the voltage across them with a scope. Next I would look at the drain current of Q1 with a scope and current probe. Verify that the transformer is not saturating. If the transformer is saturating, this would cause excessive ripple current in the capacitors and increase the switching losses of Q1. Also check Q1's the drain voltage waveform to verify proper operation. Z. Cochrane