I think you may be right... I would have purchased new O-rings for it, but they were extremely expensive, like I think 2 o-rings were $190 dollars on their parts breakdown picture of the valve. I wonder if they would be readily available sizes? I will be disassembling it again today, this time removing the spool cap and inspecting internal o-rings, I guess I will find out then! Thanks to all for the continuing assistance.
WOW! Are these just for sure "O"rings? If they are find a hydraulic shop some where to see if they can not find something that would work. I would find it hard to believe the spool would be wore out already.