Wow, that's exactly the same problem I'm experiencing with my 240U! I cleaned the screen, replaced the filter, rebuilt the hydraulic control valves, and replaced all of the O-rings between the pump and the control valve, replaced the pump's gasket, and it still foams out the breather until the level of fluid drops. I noticed the section of rubber hose in the suction line is kind of ratty looking, and wondered if air could leak in, while fluid wouldn't leak out, but didn't know if that was possible. I'll try the pressure test Jim suggested as well. Please report back what you find out, as the problem has been driving me crazy.
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