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I have the same unit in my Skymaster and everything works perfect, including altitude hold. I'm an engineer who spent 20 years in the hi-tech space business and I have been very pleasantly surprised at how well it works.
Others may disagree, but here's my suggestion: try to get the unit repaired. In the end I think you will be satisfied with the results and, if you do it right and depending on what's wrong, I think it will cost far less than installing a new S-tec unit.
Part of the problem is finding someone who knows these units. If you can't find such a person near you, the units can be removed from the aircraft and sent to one of several companies which have the needed expertise. I say "units" because I believe there are two main boxes, the one with controls under the panel and a larger box (with most of the electronics) typically overhead, behind the headliner above the rear seats. In addition, there are other elements of the system throughout the aircraft, such as a servo and gear unit in one of the booms. But if you reach a knowledgeable person, he/she should be able to diagnose the problem and tell you what units to send for repairs.
If you choose to go this route, do some "Search" on this message board to see if the name of some of these companies appear. I have the name of a retired fellow who is an expert on these systems. By phone he advised me and my A&P on the repairs needed when my 400A had a problem. He might be able to suggest companies. I can look for his phone number if it would help.
Ernie
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