3-pt problem on IH354

I have an IH354 diesel utility tractor from the mid 70's. I am experiencing the following problem:

With an implement attached to the 3-pt. hitch the system will not maintain a constant position. If I raise the hitch it raises fine but it drops ever so slightly and jumps back up like it has hiccups. It jumps like this about every 15 seconds. It's kind of annoying when I am mowing with my flail mower.

I know it is an internal leak in the lift system, but could someone point me to the correct area of the system to look at? There are two different spool valve assemblies and a control valve repair kit available on ebay and I have considered getting them and replacing everything. I don't know if it is a good idea since I don't know about the overall quality of the parts - probably from India. I don't want to finish with more problems than when I begin.

The tractor is new to me and I have not been into it so far. I have good copies of parts and service books to go by, but I need a starting point. The alternative is to live with it...

Thanks!
 
Hi, it sound like the Oring on the piston is worn. If you stop the engine with the hitch in upper position, does the hitch lower by itself? Bernard le mecano Quebec Canada
 

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