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If you've got difficulties when turning in only ONE direction, I would suspect issues with your rack. The pump is probably ok, but you may be loosing a seal in the rack. If you can afford it, a synthetic or durablend ATF may help a little bit. As for using Dexron III ATF, you are correct, that should be the right fluid for your vehicle.
In my vehicle, I'm suspending a small donout magnet in the power steering resivoir. I'm using a doubled up nylon thread and it's holding the magnet up about an inch or so off the bottom. This picks up any metal particles that may come off the rack and would ordinarily cut into the seals as the rack is operated.
God bless and good luck,
Fitz Fitzgerald.
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'87 Blue 245, NA 223K
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