Thanks Zung.
Is the SPEC also acting like a sealant so that the ambient chamber is sealed? Looking at the ambient holes they are so small and if I don't use the SPEC it seems that rinsing the piston might be a problem. Using the old HP seat, I got a HUGE IP swing when purging. I got like 40psi dropped and then locked at 150psi. Something is not right here?
The SPEC grease does seal the ambient chamber, and in the case of this regulator, has also kept corrosion out of the chamber. You won't have any problem keeping it clean if you soak it after a salt water dive.
You need to use a new seat, they're everywhere on ebay. In fact, the kits come with three, so you might be able to get one at a friendly dive shop that services these, as they usually put the two they don't use in a drawer. If your IP is 150, ditch the washer and use one of the taller seats, marked with either a single I or II. Avoid the ones that have a + on the back; those are for raising the IP. There's no use even worrying about the IP drop until you get the new seat.
You also need to use a bullet (not from a gun) or some sort of dowel that will allow you to install the piston without damaging the new HP o-ring. The material and hardness of this o-ring, as well as the quality of lubrication on the piston stem, and the condition of the piston stem itself, can probably have a significant impact on the IP drop. If you want to try what I would consider to be the best option, use a new polyurethane duro 90 o-ring, lubricate it generously with either tribolube or christolube, and use some very fine abrasive like micromesh or even polishing compound to break up any glaze on the piston stem where it contacts the HP o-ring. Put a little lube on the bullet and the piston stem too.
Even so, you'll probably find that the MK10 has a surprisingly large IP drop, but 40 PSI is way out of range. 20 might be more like it, and the recovery should be VERY fast with good lock up on a new seat. Re-installing a used seat has always resulted in some creep for me.
Have fun!