I tried plugging off the steering discharge port on the hydraulic block and dumping the discharge directly through the top of the transmission cover. This made no difference. I even changed the oil in the transmission at this point because it was in pretty bad shape.
So I decided to tear into it again and I got the diverter valve apart by shoving a small screwdriver through the holes to get some leverage on it and I think this is pretty definitive.
Here's the spool. This is about the size of the tip of your pinky finger. You can see the scoring marks in it. It still moved in its bore pretty easily like this, but it would bind some from these surface irregularities.
These chunks of metal fell out when I got the cylinder unscrewed from the cap. Even if the spool wasn't worn so badly, these would have been causing issues.
Sorry for the poor focus, but this is the cap. I think this is where the chunks of metal came from. I actually noticed these notches when I had it apart, but the busted out areas were so symmetrical, I thought they were machined in there for some reason. Not so much. I'm not sure how you break those pieces off and they end up
inside the valve with the spring, but there it is.
I was thinking because of the extent of the damage, I might as well just order this whole diverter assembly and start fresh. I think other than the spring, everything in it needs replacing. Having second thoughts after I found out that it's a $730 part! Could not find it cheaper anywhere. I could completely redesign the hydraulics on this machine with off the shelf parts for less than that, which is sort of what I'm leaning towards right now. Because of the expense I tried lapping the spool and putting it back together. It moved more freely in the bore after I did it, and the steering does work slightly better without dead heading the loader, but it's still not anywhere near right. I think that spool probably needs to be tighter in the bore for it to function properly. Too much blow by maybe?
I went out and got a bunch of work done with the tractor today anyway which made me feel better about it. I'm really loving the 4 wheel drive for the loader work. My last tractor was a big old Massey 204, which compared to this little guy was a beast, but it was all but useless on a grade with anything at all in the bucket. For now the workarounds with the steering and loader allow me to use it, so I'm going to leave it alone for now. I'll probably start collecting parts to modify the steering and hydraulic system in the next few months. I'm thinking of running a separate power steering pump off of a belt and just eliminating this diverter nonsense completely. Might just get an aftermarket priority valve and cap off the port to the steering circuit and eliminate the priority valve in the existing valve block to keep it simple too. That way I can keep the shutoff valve for the loader in place. Decisions, decisions.