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Paul,
Maybe this is a long shot, but I'll suggest it anyway. Don't those old Cessna autopilots have a knob that allows you to turn the aircraft (overridnig the NAV or HDG mode)? I think it's a black knob on the autopilot that looks like an egg timer knob, and it's surrounded by a 270 degree white collar. If that knob/collar is rotated, then the plane will turn in the direction it's pointing. The knob should point straight up. Make sure that's not your problem.
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