OK, had a crash recently, since then my forks lost 20-30mm of travel (with all air let out) and lost lockout. Stripped them down last week and the motion control oil had leaked into the lowers. I striped and cleaned the internals and replaced the oil. Tonight noticed that have lost the last 30mm of travel again and the lockout is not working properly.

Whats the next step?

Should I buy the motion control service kit from TF Tuned and take it from there. I'm reluctant to send them off as this will cost about £90 and they only cost me £120 new off ebay in January.

As per the title the forks are 2008 Recon Race Solo Air 100mm

Also is it a total no no to ride then like this (stupid question I know) its just I've been off the bike almost 3 weeks as my hand was hurt quite bad and I'm itching to go for a ride next week.

Now Im no expert but both recent Rockshox air forks I bought from new developed this "feature". The first was temporarily fixed with a service kit (lower inner damper seal leaked) but it soon re-occurred. The second was fixed under warranty. So in all honesty either eBay them and buy new or have them propery fixed.

Edit: given that the lower seal is probably shagged anyway you can't make then much worse. So long as there is some blue oil lelt in the damper.

It'll be the rebound seal head that's leaking. They're made of plastic and it might have deformed in the crash meaning the o-ring in it can't seal properly. Or it's one from a bad batch and the o-ring moved when you stacked it.
You should be able to send them back under warranty to get this fixed as the part was machined incorrectly on a large batch of OEM forks from the 08 period.
It's not advisable to ride the fork in this condition if you want to claim warranty.

Can I warranty this fork despite not being the original owner and being 2008? They were new when I purchased them off ebay this year (steerer was uncut + then were in totally new condition)

TBH the worrying thing is the seals looked fine under visual inspection when I stripped the fork, but I'm no expert.

I'm feeling very disappointed at the mo because it makes you realise that very expensive forks seem to rely on a bit of plastic and a 1p propriety oil seal to keep them working and when things go wrong its alot of money to sort out. I'm not saying I have a better solution but its not as if this was a big off as the bike didn't suffer as much as I did from the crash.

Follow up, fixed with a new oil seal from ebay, chuffed. I think the original 2008 seals were too small and had a leak problem from other posts I've seem.