could it be a faulty spool valve?
I wouldn't bet a dime on a faulty spool valve, before I have checked the load check.....
The load checks are there for just this reason....to prevent load from dropping when hitting the valve lever....Load checks are specially important for this reason on Open Center systems, because the oil pressure is low in the center core when valves are in neutral, on the pressure in the work port can be high. At beginning of spool travel, both pump flow and work port will be connected to tank via partly open center core. If load check is not working the load (boom) will drift down until pressure have been built up.
To build pressure, spool valve need to restrict the center flow.
How much spool needs to travel (lever stroke) to build necessary pressure, depends on flow (GPM) in the center core and the size of pressure there is to over come in the work port...
If work port have low pressure (light load), spool do not need to travel far to build enough pressure....
If flow is higher (by raised rpm's), spool wont need to travel far to build enough pressure....(pressure can be increased by raising rpm's)
If work port pressure is very high (very heavy load), spool need to be close at end stroke to build enough pressure, or at the point where the center core is fully closed. This is usually a condition to create max pressure from pump. (Max pressure=relief valve open, relief valve open=work cylinder stalls)