I finally finished my touch keyer project. Here are my pictures...
The touch keying works very well even at high speeds. The sine wave audio sounds very good.
There was a problem with the big speaker magnet bothering the reed relays, but i moved them further away. I am now trying some toroids to reduce RF getting into the final audio amplifier. The RF is coming in through the 12 volt power adapter. I had the same problem with computer speakers and the toroids solved it.
The paddle has crescents cut from a tin can then glued onto the sides of the marker pen cap. The paddle was dipped into red enamel paint a few times.