First, if it is wired for 220V, then who ever added the cable and plug has created a dangerous electrical situation by using ground for neutral. With the 220v units, unless there was a transformer in the system, required 2-hot leads, 1-ground and 1-neutral. That can be corrected and you should to make it safe.
The two valves are manual over rides for the auto-drain and during normal operation should be in the "open" position. The system is set up to dump when the solenoid is de-energized and close when energized, so it is "normally open", meaning that the vent port is open to atmosphere when the solenoid is de-energized. The timer controls the frequency of the drain interval and the duration of that interval, usually every 15 minutes for 8-10 seconds. I would make note of the component positions and disassemble and clean the drain plumbing, test the check valve (replace the o-ring as well, it is an A-010) and replace the 907. if it sat for a long time, the control line may be blocked, both from the 2nd stage head to the solenoid and from the solenoid to the SS-400-8-4 fitting on the 907.
Since you were able to run the machine to pressure, I would now seek oil that will work for your application. I can offer you either 751 or 800, but not any that Pesky mentioned.
Craig