Yes this is a know problem to this forum at least. I received my new MT125 in the first of November and I had a sticking control lever from the start. After I saw this post I pulled the two boots and discoverd the same mess as everyone else. So I cleaned it and resealed it "like everyone else" but I went one step further. After some experimentation of hose size I found that a 3/4" piece of 1/2" heater hose would work. After I cut it to the 3/4" length I slit it longwise and then cut out about 1/8" of an inch of the diameter of the hose. Then I could slip it on to the lever handle and it was a nice fit. Then after doing battle with the stiff rubber boot I discovered and here's the trick, you turn the boot inside out on the lever around the knob. Then you put your "bushing" up right next to the boot and work it in from the bottom. Then you unfold the boot around the little lose "bushing" and you have a seal. then take a wire tie and secure it tight and this will solve the problem of the rain or wash water running down into the control surfaces of this valve. Like most dealers, including the LS assembly plant, these machines are stored outside in the elements. The rain will run down that control stick/lever easily. It will sit on top of the lower valve seal and seep in and cause all the corosion problems we all are experienceing.
I love my LS Tractor and I even love the fact that I can come along and clean up and "help" with some of the finish engineering of my machine. I would buy another LS tomorrow as I feel it's a superior machine to it's competition and especially at the price. So this is the permanent fix for my machine. Now I would love LS to give me the more involved fix for the three point hitch. But I'll be satisfied with with my quick fixes and improvements.
Hope this helps,
Lisa
Here are the before and after pictures.