Is that an earlier 4 cylinder 4000 model, or a later 3 cylinder 4000 model?
Since you mentioned a flow control valve, I assume that it is the later 3 cylinder model, since I don't believe that the 4 cylinder models had a flow control valve.
Has the dealer actually looked at the tractor, or are they just going by your description of the problem?
The flow control valve controls the speed of the flow of the fluid, but not the pressure or how strong it can lift, so I personally would doubt it being the flow control valve. If it allows enough fluid to flow to lift the arms with no weight on them it should allow enough to flow to lift them with a load as well. It sounds more like the relief valve is leaking or opening too soon to me.
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