Turned out the first rack I got from Garo Steering was no good. There is definitely something wrong internally with the rack. Originally I thought it might be the spool valve, but you can feel the rack binding even when just turning the rack by hand (that's not a good sign) so it may be a combination of things. I'm not impressed at the quality so far on this one, but I emailed them for a replacement. I'll report back when I have another rack from them. Major PITA shipping stuff this far so hopefuly it comes quickly.
For now I installed a rack from the junkyard until I get a replacement.