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My power steering valve is leaking bad and needs to be replaced. I'm letting the pump run dry and still driving around basically with manual steering. My question is, will the pump or anything else in the system be damaged if it runs dry and I drive like that?
Sorry guys, but driving around with no pressure on the power steering system is about as bad as ruining the pump with no oil!
You will have excessive play in the steering as the pivot bolt in the valve will first move from one side to the other before moving the relay rod. I would only do this in case in emergency to get back home (and drive very carefully). But this will most definitely ruin the valve completely.
BTW, DO replace the valve with a NEW (not rebuilt) unit. And forget about the rebuild kits. This is a fix for 1 year (if at all) and then the leaking starts again. Fix it once and forever.
In defense of the rebuilt control valves, you may note that several major Corvette suppliers warranty their rebuilt valves for five years. The new ones only for one year. That would seem to indicate confidance in the rebuilt type.