I just received a message asking about this thread - my apologies Crayon143 - I hate it when a thread has no resolution. I just forgot!
So, here's what I did. I visited my local Autozone and picked up a bottle of
BAR'S POWER STEERING REPAIR (click for link). I then destroyed my wife's turkey baster by using it to siphon as much nasty fluid out as I could. I replaced it with the Bar's. The bottle said it could take up to a month to work - but after a week I could already tell a difference. So now I was sold - I used what was left of the baster to remove ALL the fluid I could and topped it off with Bar's again. Within the month, the problem was indeed gone and I was very impressed with this $10 "repair".
So, good news is - it works properly now and for only $10.
Bad news, the premature death of a turkey baster.
-Doug