I contacted Autopilots Central in Tusla as some of you suggested. I asked if there was something I could do first to localize the problem before sending the AP in. Barry there gave me some great instructions which I will try first. If I need to send it in I will definitely send it to them. I copied his email. I thought it might be of interest to anyone else having similar issues with their AP.
Alan, Go to the roll servo. Unplug the connector. There are four pins, A, B, C & D. Pins A & B are the engage solenoid. Pin A is ground and pin B is 12 volts or battery voltage. If you put your volt meter on Pins A & B at the same time, you should read approximately 12 volts DC with the autopilot engaged. If no voltage you have a bad controller. If you do have 12 volts, bad servo. Next, go to pins C & D. This is motor drive. If you engage the autopilot in the heading mode, while your volt meter is across pins C & D, if you move the heading bug, you should get varying voltages of 0 - 10 volts DC. This will go positive and negative according to witch side of the lubber line the heading bug is on. If you have no voltage, bad controller, voltage and no motor drive, bad servo.
Good Luck
Barry