I have a new fixture in a box I could install. I have some that were kept as backups when my dad got rid of his unused pallet (failed shop lighting project). If I keep the current fixture, I am primarily concerned that a ground should be for backup safety and if it's arcing/sparking/shocking, it must have a fault. If so, adding a ground would just electrify the ground network which seems like a bad thing.
The ballast is labelled class P type 1 and is rapid start. It looks pretty old, so I'm assuming it's magnetic start. The diagram does not show ground. I tested continuity this morning and found no connection between any of the contacts and the case so I assume there is no short in the wiring (worn insulation). I assume also that there is no permanent failure within the ballast since continuity was not present. To me (ME not EE) this means that if there is power on the chassis when energized, something inside the ballast must be faulty especially since it requires a hand wave to light. If that seems like reasonable logic, I guess the choices are installing a new ballast or a new fixture.
I went through this earlier this year with a different fixture and found that the ballasts at the box stores created X10 problems. I have some fixtures like my spare installed in the garage and other than creating issues on that run, they do not affect other X10. In that case, the issue was the tombstone, so I returned the ballasts.
I am leaning towards just installing a new fixture or looking at the LED unit at Costco. Power usage will never pay for the fixture (it's not used that much), so this is really a question of installing something that isn't a safety issue, provides sufficient light where needed, and not breaking my X10 stuff.