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Here is the steering rack removed from the car. It forms part of a hydraulic circuit that aids the movement of the steering rack when the wheel is turned.
Inside the pinion gear housing is the rotary valve:
This is the spool which collects the fluid into different channels and redirects it according to which side you are turning:
Inside the rotary valve housing are the holes for the hydraulic lines that correspond to different channels on the spool.
The rotary valve consists of a small torsion bar that twists a few degrees. This twisting action is what redirects fluids through the spool to either the right or left side of the rack piston: