I had a prince splitter valve that sat for close to 20 years before I decided to use it. All the caps where in it and when I took them out, there was a little oil poured out of the valve. so I would say if the valve was stored with all the caps, it probably isnt rust. Without plugs, then all bets are off. If it is a detent valve, it should have two reliefs. One for extend and one for retract. The extend should be set at max pressure, or what ever pressure you want to work with. The retract relief is usually set just high enough that the valve will return without having to hold the handle and then pop to center as soon as pressure builds to the set psi point. what you are saying it would seem to me that the valve probably isnt shifting to full retract. I could have some piece of trash preventing you from pulling the handle all the way back. Before doing anything, install a guage and check your extend and retract pressures. You said the cyl doesnt retract with the valve in center, well thats because its not supposed to, it will only retract when you pull the lever to retract. If there is trash in the spool, it could be preventing you from pulling the valve all the way in retract position. If the valve sat around for a long time, un-capped, you could have a creepy crawler crawled inside and died and might have to remove the valve spool and give it a good cleaning.