Hi Pete, I think I know your problem. I added power steering to my 240 about 6 or 7 years ago and ran into the same issue. Hooked up the orbital motor and flow control valve that gives priority to the power steering motor and had the exact same problem as you. No power steering unless I pulled on one of the hydraulic levers. Pulled it back apart and went thru my 240 parts book and found an additional part that`s needed. A steel bushing that goes into 1 of the holes in the valve support housing. The bushing makes the hydraulic fluid go to the priority valve 1st. If you feel inside this hole in the support housing, you`ll feel another hole coming in to the side of the hole-the bushing blocks this off and forces oil to the priority valve. By luck, when I got my power steering set up, the guy had thrown in the valve support housing that the regulator/priority valve mounts to. I looked at the housing ,and sure as heck, there the bushing was in one of the holes (about .625 dia.) that go horizontally through the housing. I removed it ,put it in my housing, put it together and it worked like a charm! It is item #6 in the 2nd and 3rd picture below. I doubt this bushing is available from CaseIH any longer, but you should be able to buy or make one. It should slide in without hammering on it,not too sloppy though,just snug. Just make it as long as the housing is thick,maybe a tad shorter. I cant remember the ID hole in the bushing, probably around .562. I`ve included some pics from my parts book and of the old hydraulic support housing with an arrow pointing to the hole. I`m not 100% sure thats the correct hole, but pretty sure. Good luck
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