I had similar problems with my power steering on my 656 and had leaking seals on my draft and lift control levers. I was told to remove the pipe in the left front under that plate to lower the fluid level in that cavity and then to over fill the fluid level by 5 gallons in the event that the seal in the clutch housing might be sucking air and causing the pump to cavitate. What I did was remove that Bull Plug that you referred to as all I could see that it was was a drain plug there was nothing behind it and over filled the fluid. The leaking has stopped, the cavitation has stopped and the power steering now works. I dont know if will fix your situation but it is worth trying.
Joe
PS. Can you turn your steering wheel while your engine isnt running? Mine would just spin with absolutely no resistance whatsoever until I did what I said up above.
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