Tractor Repair: 585 case ih, teflon tape, highlift

Question
I have a highlift on my 585 and was digging dirt from a bank and with a lot of hoist and forward pressure I blew a hoist hose,so I changed it put a gal.oil in and now right away I only have half my speed and low pressure on hoist and bucket,now I then notice when my 3pt. hitch is in up position my engine is in a stall situation, if I lower it its fine.I tried bleeding like book say's but nothing helps.I did notice when I changed the filter and oil the filter had alot of teflon tape stringing out of it,could I have a valve plugged and where do I start?

Answer
There is a problem with the 3 pt. hitch valve causing the system to stay on high pressure when the hitch is up.  The hitch is not cancelling when it is all the way up and is still trying to raise.  This causes the relief valve to blow, reducing the amount of oil available for other functions.  There is probably a spool sticking in the hitch control valve.