I, too, had this problem. After buying my
L39 new and putting abut 500 hours on it, the top spool retainer o ring started leaking. New o rings would only solve the problem for a few hours or days, depending on temperature, to a certain extent. It would leak mostly when the oil warmed up, especially on a hot day. After replacing the o ring about 6 times, I decided to take the whole valve apart to see if I was missing another seal inside that might be defective, even though the parts schematic didn't show any. (my repair manual doesn't show any details of the steering valve, I had to get it from the dealer) After taking it apart, replacing all o rings and seals, I put it back together, thinking that orientation wasn't critical. I put the valve back in the tractor and had the same exact problem as KP12 above. I called four different dealers and only one of the service managers had heard of the problem before. He simply said that the customer had taken it apart and must have broken something and sold him a new valve to the tune of about $1000.00. I knew nothing was broken so I got on line, like KP12 did. No one gave him a correct answer, so no one else would know how to fix the problem.
The valve is or seems to be a copy of an Eaton, Char-Lynn valve. It has Syn Gin on the casting so I don't think it was made by Eaton, however, the design is a basic one and they are made, pretty much, the same way, according to the Eaton-Char-Lynn rep that I talked to. He told me how to time the valve and emailed me the instruction sheet.
Yes, it is a timing issue!
With the valve in front of you with the ports facing you and the open end that the geroter goes in, up, you make sure that the dowel pin in the spool valve is horizontal to the port face. The geroter is then installed with the gear roots horizontal to the port face and all the way to the side that is at the 12 o'clock position.
I also took 600 grit emery cloth and polished the o ring cavity in the cast iron housing on the spool end, which looked a little grainy being cast iron. I then polished it a bit more with Simichrome polish. I cleaned it up, put a new o ring in and used a brand new spring clip to hold the spool valve retainer in place.
The valve works perfectly and also doesn't leak, so far, after about 50 hours of hard use.
I hope this helps someone else because I know the frustration of trying to get this thing to work, knowing that nothing is broken, and of course not wanting to shell out $1000.00 needlessly. One dealer did refer me to a hydraulic shop to have it repaired, but I got his email after I had fixed it. The dealers have no information on how to repair this valve and would probably just tell the customer that it can't be fixed and to just buy a new one, plus installation costs. Typical!