Well, it's fixed. I was quite sure the problem was friction between the HP o-ring and the piston shaft. I really thought replacing the viton o-ring would do the trick so when ift failed it was time to think about it some more. I decided to take a closer look at the shafts. It looked like most others - stainless steel polished but still see mfgr production marks. Started to compare with some of my older Mk20 pistons and I noticed the current Mk25 composite piston looked similar but an older Mk20 piston had a chromed shaft. I had one more new Mk10 piston which also turned out to hav a highle polished shaft - perhaps chromed. I just installed it and now the IP change over the range of supply pressure is about 5 psi - about what I expected.
I took one of my other Mk10s out of service and replaced it with this one for use on an HP tank. Next project will be to see if a little polishing of the shaft on a problem Mk10 piston with good knife edge will help. I may even have to look into having one chromed. We'll see.
Looking for a good Mk10??? The problem is looks good and performs well are two different things. They can look real good on the outside but have slight damage or corrosion on the inside on any of the dynamic seating surfaces and not be able to achieve 'like new' performance or could even be unusable. And, unfortunately, there are folks who will try to dump their problem regs on ebay after they clean them up and make them as presentable as possible. Surprisingly, I've had good luck with just plain ugly looking regs that it was fairly clear the seller did not know that much about them and was just cleaning out someone's junk. I've bought about 2 dozen regulator stages on ebay and have not gotten burned yet. If you are not willing to take the chance on a bad one, you may want to look local so you can test it before you buy. Good luck.