^ air spring side has nothing to do with the lockout. Leaky air - that's a totally different issue.
Lockout is mechanically (sim) stopping the fluid flow in the damper side. If you are rebuilding it, put accurate amount of oil there, and make sure the top assembly is not loose.
My advise is to send it to PUSH to get serviced. They may be able to tell you what's going on with your air spring too, among other problems you are having. What you describe sounds like it may cost you some $ though.