I just got some of the recommended Dow Corning High Vacuum Grease in the mail, so I'll put that on the edges of the pad and the exposed parts of the piston, next time I disassemble per the suggestions I've seen (not on the seal, etc.). I've sanded down the pad and everything so it moves freely (when I turn the caliper upside down, it drops out).
One thing I did notice with the new piston, is that it's VERY tight. With the old piston, I could slide it in and out with my fingers fairly easily. With the new one (and the new piston seal), I couldn't at all.
The thing I notice, though, is that when I'm pumping the piston, it always moves further out than it does back in. How does that work, exactly?
Yeah, the return hole seems fine. I've seen a lot of the posts about cleaning it up, but despite the age the reservoir is pretty clean. I've cleaned it up though.