Richy,
Couple of things to try, Set the machine up but a without the lance on, start it up, watch to see if the water flow is contantout of the HP hose, if it looks like it is splutering you might have a bit of air in the pump, let it run for a couple of minutes to see if it clears. If it does put the lance back on and see if that is any better. It sounds like the unloader valve is leaking when it goes into by-pass, you do mean that the valve is leaking and not the by pass hose? You do have the unloader valve turned all the way up to max pressure?