Ok, here's what I found. First, an annoyance. The hot water valve under the sink never fully shut off all the hot water, no matter how tightly the valve was closed. That limited the amount of time I could spend on the faucet, because without the ability to fully close that valve, there was always some water dribbling through the faucet housing and along the countertop. Argggh!
Now, I did manage to get all the parts off to where I could get to the diverter valve. The diverter looked very clean to me, actually. No gunk or crud around it. Gaskets looked like they were in good shape. Is it possible it's still a failed unit?
However, a larger valve that sits right under the single faucet handle felt quite greasy, and underneath it was calcification. Here's a large view of that valve:
http://www.lockeplumbing.com/detail....48&r1=&r2=&r3=
This valve is what directs hot/cold/mix to the spout. Could this valve be my problem?
None of the water inlet ports were blocked on the metal housing that the valve rests in, however, and when I turned the water on full to flush out those ports, there was no obstruction (I'm talking again about the metal portion of the faucet housing, not the valve itself).
Unfortunately, as mentioned, I didn't have a lot of time to mess with this larger valve because I couldn't get the water fully shut off under the sink.
Anyway, when I put everything back together after a flush, the only time the water didn't come out of the spout was when I used the sprayer. To be clear, I would use the sprayer, but when I released the sprayer handle, all water flow stopped. No more water from the sprayer, and none from the spout. Prior to my disassembly, the water would start to come out of the spout and then trail off or abruptly stop, even if I hadn't used the sprayer.
One note about the diverter valve: Because I couldn't fully close off the hot water valve under the sink, there was always some hot water coming into the faucet assembly. Water was leaking out of the diverter valve hole,
even with the valve in position. Fortunately, there was no leaking when I reassembled the faucet assembly en toto. Is that normal, though?
So, I guess some small measure of success, but hardly enough to please the wife. Any thoughts on where to go next, Tom?