When installing the new relief valve, how do you plan on disabling the existing relief valve? Since it is inside the control valve with a path leaking from high pressure to low pressure, it will continue to limit the system pressure to 700PSI as it appears to be doing now. I am not exactly sure of a way to disable a safety relief buried inside a control valve, short of a precision machined plug... Since the relief adjustment changes the spring tension applied to a valve, I would say there is something keeping that tension from increasing the sealing pressure on that valve assembly. Perhaps a stuck valve plunger...
Perhaps one of the dealers here would be willing to take a look at your valve and compare your parts to a known good one and look for a flaw in your system.