Good thing is that the loader works which rules out bad hyd pump. 3 point lift does not have pressure down feature and can only lift and you can lift the arm by hand if nothing is attached to them. I am not particularly familiar with TC-40 but they all have the same conceptual design. You need to follow the route oil pressure plumbed to lift piston.
1- what happens when you try to lift the arm with the hydraulic without any attachment? do you see any movement, jerking on the arm?
2- You lift piston seal might be leaking. If that is the case then hyd pressure should lift even with it leaking but would drop as soon as tractor is off. The rate of drop is purely based on the size of the leak.
3-NH website does have the schematic and I can download if you have not done it before.
4- replacing he seal is not a difficult job, it is good that the hyd pump is working as that problem is high $$$ fix.