"we now find we need a 12V AC power supply 250mA. I went back to Jaycar and they only sell an 12V AC 500mA. The techo told me I would fry the theremin as the power supply is unregulated and would deliver 24V AC instead."
I feel that 24 volts (100% regulation factor) is too high an estimate for a 6VA transformer. With low VA transformers such as these I would expect a regulation factor of around 30% to 50%. That is, at a nominal 12 volts the unloaded voltage would be in the order of 16 to 18 volts.
(I guess the way to find out is to ask Jaycar to measure it at the desk for you. Depending on the store, and how busy they are at the time, and how you go about asking, I find that most of their sales assistants are happy to help like that.)
I'm not familiar with the project's circuit, but if SC originally specified 12 volts AC @ 250mA (a very low 3VA), then, knowing it's a low current application, I guess they took that regulation factor range into consideration?
This type of AC plug pack is becoming increasingly harder to find these days. It's really only legacy equipment that requires AC. Nowadays, it's switch-mode DC input.
I don't know where to find a plain 12 volt DC regulated PS in a box. That's the sort of thing I'd expect to make myself.
*** As a further thought: if it turns out that the Jaycar 12 volt plug pack has an unacceptably high unloaded voltage, then possibly try their 9 volt AC version -- which may come in at a more acceptable unloaded voltage. Again, without knowing the tolerance allowed for in the design, it's a hard call.