How's it going matey
I've a 97 model and when I got it and stripped it down the governor was a pile of mush. The needle thrust bearings had disintegrated and the spacers were all worn to buggery. This thing works by centrifugal force, throwing out 4 ball bearings in a cross like cage, this cage wears where the bearings run and they groove it and then stick, causing the valves not to open fully. I replaced every part of mine except the gear which was okay. Another thing, the only thing holding the operating arm on to the toothed valve rack,or rod, is a tiny e-washer that fits into a groove on the end of the operating rack,or rod. Make sure this is in place, if it isn't then the grooved collar that the lug on the governor arm locates into may have fallen off the rack as well. You are right though when you say the arm should have resistance as there is quite a strong spring on the governor assembly.
Hope this helps Jerry, let me know how you get on and if you need any further info.
Jamesy.