Kevin,
The power beyond valve is a stock 4-way hydraulic valve when shipped to you it has a SOLID plug threaded in the power beyond port with machined steps on the inside of the plug that redirect flow inside the valve..when you unscrew that plug out and replace it with a power beyond plug,which is ported with either 1/2" or 3/4" threads THEN it gives you a second circuit..there are steps machined into the plugs that set up the flow inside the valve when you thread the plug into it. You have to replace the P.B. plug in the valve if you are not using that flow for anything..plugging it off without the original block-off plug will cause issues inside the valve I do believe with the relief valve routing INSIDE the valve.

If the P.B.valve is in neutral position, yes the flow goes right thru the P.B.valve out the PB port onto the next valve in line..thats how my loader works,it uses the pump flow thru the P.B.valve's PB port to feed the 3-section loader valve..if the P.B.valve handle is pulled the flow goes to the P.B.valve steering function(priority)and flow stops to the downstream loader valve.The downstream valve can always pass fluid out of a valve section back to the tank regardless,this is just dumping pressure back to the return line(like the loader mast returning to the ground)-pressure flow not necessary for that.Try to raise the bucket you will have nothing until the steering circuit P.B.valve is neutralled then flow resumes to the P.B.port to do work with the downstream loader valve.

Minimal pressure in any and all circuits on my machine with valves neutralled (loader and steer are one pump section, propulsion drive is another pump section-its a 2-section pump) I hope I clarified that my machine is a total one-off custom design articulated,not a Cadtrac design,altho the hydraulics are similar in operation.I have no flow dividers,just two pump circuits which is a bit more efficient than using a flow divider to split flows from one pump.I have three returns,one for the PB steering valve,one for the downstream loader valve,and one return for the propel valve.All returns are direct run back to the tank,but two are manifolded like Gator mentioned..but right at the tank with 3/4" full-flow tees.

I'm highly suspect that you have an improper valve or connection which is causing your heating issues,the picture of your valve-on the valve port the tee'd off line looks as tho one hose line is reduced in size..you shouldnt be building heat in the system until about an hour or more of operation..even then it shouldnt be reaching 200degF that quickly. I can run my machine for two hours straight moving pallets around and it only just starts to get warm..No oil coolers and Im running a ISO46 weight hyd oil, similar to 30W but has additives.I dont think the fluid(oil) is your issue. Anyway,you should not have a valve feeding another valve from a valve return port..spend some time checking your hose routing,maybe draw it up on paper with what you have and see.