Your problem is that you're using the fill pipe as the return line.
I can't even get oil in that pipe with a funnel on mine. It runs VERY slowly. You're trying to shove a bunch of oil in there under pressure! No wonder it squirts out!!!
Look over the hydraulic block. There are pipe plugs in several locations on the body of the block. These are potential return ports. I used the 1" plug on the right rear of the block.
If your hydraulic pump isn't making funny noises, getting hot, etc., AND the loader seems to have good lift capability, there's nothing wrong internally.
Oh yeah, in your last picture it looks like you haven't connected the OUT side of the third (left) valve! Oil should be squirting out there like crazy!
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Today's Featured Article - Oil Bath Air Filters - by Chris Pratt. Some of us grew up thinking that an air filter was a paper thing that allowed air to pass while trapping dirt particles of a particles of a certain size. What a surprise to open up your first old tractor's air filter case and find a can that appears to be filled with the scrap metal swept from around a machine shop metal lathe. To top that off, you have a cup with oil in it ("why would you want to lubricate your carburetor?"). On closer examination (and some reading in a AC D-14 service manual), I found out that this is a pretty ingenious method of cleaning the air in the tractor's intake tract.
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