OK problem solved. I don't know anything about these spring loaded seat posts, but as we are going on a ride tomorrow I suggested he bring the bike over and I would play bike fixer.

Basicly this is just a tube inside a tube. I unscrewed a plug from the bottom and found a tube spacer, a Delrin cup, a double tapered spring and another derin cup. So no damping just a spring. There was also a pinch collar at the top. I tightened the pinch clamp as tigh as i could but still give the inter post the ability to slide. This took most to the side to side slop out. Then I re assembled the tube but screwed the plug much farther in. I'll call that a "pre load" and now the post works just fine. My guess is that the preload was left backed all the way out and the spring has sagged. I also did some normal cleaning and adjusting and suddenly everything works as it should.

While I was at it, I put my new bike up on the stand and found even though I haven't ridden in the dirt, the underside of my front derailer was super cruded up. So I cleaned both and relived them and now there is no issue going from the small chain ring back up. 20 min and two bikes ready for tomorrow's ride!