Finally we have the Demon up and running! WOW!

You might have air in the system, raise the front wheels off the ground and slowly turn the wheel lock to lock slowly many times and see if that helps, it should slowly remove the air trapped in the system.

Make sure the P/S belt is nice and tight...it could be a bit loose, and slipping as you turn the wheel. This would cause it to kinda jump, or feel tight in one direction, as well as make some noise.
The control valve may also still need a little fine tuning...
As Todd suggested,, turn the wheel "lock-to-lock" several times slowly, to bleed any air that may still be trapped in the system.
A word of caution here...if you raise the front of the car off the ground to do this, DO NOT reach thru the steering wheel to start the car. If the control valve adjustment is off, it could snap the steering wheel in one direction HARD, which will almost always snap a bone or two in your hand....DON'T DO IT! Start the car while sitting in the seat without touching the wheel, or from the passenger side.

Some people recommend dis-connecting the end of the steering ram that fits into the bracket on the driver side frame to adjust the valve. This makes it safe to start the car with a valve that is out of adjustment.

Finally found the problem! 

After spending tons of time trying to adjust our power steering control valve the problem was this....

We installed a new power steering cylinder because the old one was leaking. Turns out the new one was defective! So we reinstalled the old one and whalla it now works.

So tomorrow I call Corvette America to return the bad one. This time around I think that I will buy a refurbished PSC instead of a new one.

 

Anni and her Red Demon