Thanks everyone for the replies. I purchased the Utilus from someone who got it from someone else type of thing. As mentioned before it looks brand new with the oil fill tag still on it. I don't know if it was ever run as it didn't have any oil in it nor a filter. Bauer in Virginia pointed me to the correct manual for the compressor and after reading it I spoke with Porter Stiles of August Industries to obtain the proper oil and filter. He also made a few suggestions about the filtering system and the use of the main relief valve. Both the Bauer rep. and Porter were very helpful, both great folks to deal with. After installing the oil and filter I started the compressor for the first time and experienced the condition described at the beginning of this thread. It's the weekend and without access to Bauer or Mr. Stiles I thought to post the question here. I agree that it makes sense that there's something amiss with the PMV, especially after looking at the flow diagram in the manual. Since the compressor sat idle for so many years it's possible that some corrosion set in and locked the valve shut.
Your previous first post was the clue that no one here picked up on.
20 years stood idel from new and without oil.
I see Bauer Virginia and Porter couldnt have been more helpful.
Either way you need one of them now.