I have a similar problem with mine, however I have my old one in the garage, which I repaired using parts from a nieghbours. I havn't stipped mine down yet but I'm fairly confident it is the solenoid valve which activates when you press for steam that is the problem. If you remove the solenoid, take note of the details, and do a search on google for the part, it is available, as I was going to buy one for my old iron, befor I got hold of the nieghbours.
Mike Fabisiak, April 2008