Jerry: Did your 240U hydraulic ever work properly since you've owned it? It sounds like you haven't had it that long and are now getting to use it. The pump has been replaced, yet nothing happens when you try to cycle the system, and you have a milky oil appearance. Milky can is a sympton of moisture or air entrainment or both. It sounds like the pump is not moving oil and may be pulling in air on the suction side of the pump. This where the air entrainment can happen. If your 240 is similar to a 460's hydraulic system (I think they are), there is a suction pipe with a rubber ring seal which inserts into the suction side of the hydraulic pump body and provides the hydraulic and power steering pump with oil. Sometimes during pump/pump flange installation, the pipe, sealing ring or both may get damaged allowing the pump(s) to suck wind. These items are not hard to check. Just remove the pump mounting flange from the transmission/TA housing and give them a good look. Also look for the pipe not inserted properly into the pump body. The sealing ring and the little flange that backs it up are closer to one end of the suction pipe than the other. The LONG end of the suction pipe is what goes into the pump body. If the suction pipe got inverted, then the sealing ring will not be doing its job. Your shop manual will show you how the pipe is oriented. One other interesting thing you said is that the sump leaks and loses its oil. I'm just wondering about an O-ring that seals the hydraulic oil passageway between the TA housing and the rear end. If this is bad, pump wind sucking will also happen, but I'm not sure if a bad O-ring will simply let hydraulic oil to leak out when the tractor is parked. Having said all the above sort of flies in the face of the statement from the previous owner saying that the 240 worked fine before he parked it. Could also be the regulator piston is stuck and holding the ball check valve open. If this is the case, hydraulic pressure will simply dump back into the sump and not be diverted to where you want to tell it to go--loader or hitch. Consult your manual for the location of these items. They're easy to service--at least they are on a 460. Keep us posted on what you find.
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