Carl,
These are my thoughts on the operation of the PTO and steering valve block. The PTO section, is considered an open center valve, because with no voltage, the hyd fluid just flows back to tank. The hose that goes back to tank, also, take the fluid from any relieved condition, or over pressure. and sends it back to tank until the relief condition is met. When the PTO switch is activated, the orifice to tank is closed off, and the fluid flows through to the output line. The steering and lift pump feeds the block through a channel, and on to the steering and lift circuits. If an over pressure is realized, the relief valve routes the pressure back to the tank through the same hose as the PTO relief, until the relief condition is met.
On the solenoid section, did you take the solenoid assembly out of the block, and worked the plunger with a solid 12 v, and not through the PT wiring? When you activated the solenoid /plunger, did you hear a heavy click or thump. Those things don't go bad that often, so I suspect some trash is binding things up. The electrical part of the solenoid only cost around $30.00. I don't know what sizes they make them, but you can see some more examples in Baileys catalog on page 61.