Thanks to many of the wonderful posts and replies here, I was able to diagnose and fix MOST of my well/pump issues.

I started with the pump cycling constantly and found that the pressurized tank had no pressure. I drained the tank, and put about 20psi of pressure back in. My cutoff/cuton pressures are 40/70 and all seems to be working better. Now I understand that the pressure in the tank should be 2 psi less than the lower setting (thus 38 psi in my case) and I plan on adjusting more.

Finally to the question....

When I watch the pump cycle, it cuts on at 40 and off at 70 as it should with the water running. I run the water just long enough for the pump to come on, then shut it off and watch the pressure build to 70. Now, without any water running, the pressure slowly bleeds down to ~50 and holds. Is this normal, or should it maintain the higher setting of 70 until the water is turned back on? If it is not behaving as it should, will the adjustment of the holding tank up to the proper level of 38psi help this?

Thanks again for the great forum and advice.