dak - Re: the Squirrel, one pilot reported the problem in Canada coming off a mountain at 8000 feet, and another reported it flying at 40 kts around a fire - "in a 15 degree banked LH turn around a fire at 80 Kts, 4500' +30 C" Yet another got it about once a month in the Rockies. There have also been two reported incidents of a hardover on the ground to my knowledge, one at Remote helicopters (to a friend of mine) and one at Canadian, which wasn't originally reported but subsequently discovered.
I certainly think more pilot understanding of the hydraulic system is required before the average type rating is given.
Phil