I think you answered your own questions, if the ports were full of crud, it probably hung the valve in the PS box. The milky color could be heavy aeration or water in the fluid. If you let your cup sit overnight with that in it, by now you should know if it separated the water, or the air is leaving the building. At this point, I would agree with those who have told you everything is suspect, the dirt and possible rust has contaminated the lines and has made it's way back to the pump. There isn't too much inside these pumps, if you have access to a pulley puller/installer a reseal kit is dirt cheap (pun intended) .