Hi Jim, It is difficult to get a small governor to function properly.
Yours does seem to have a tight spot in the motion that won't allow it to settle on it's own.
While I don't recall if the one here has that issue, I would think you could add Maas, Simichrome, or a valve lap compound to the sliding parts of your governor. Then move it through it's full motion by hand until it feels freer. Then clean away all the polishing goop and oil it.
Please let us know if this is helpful.
Gil