A little update
Changed the oil in the pot for a heavier one (75-85W if I remember correctly). Slowed it down but only by a second or so, nowhere near what I needed. So I figured I'd try adding more oil. Well what do you know, I was much too low.

It is now taking about 8-9 seconds to apply the main load. The difference between that and the 5-6 seconds recommended is surely due to the heavier oil but I will leave it like that for the time being.
I then made a flat anvil out of mild steel. This will have to do until I can get a stock one or some steel I can harden.
Next step was to take apart the arm assembly and give it a good cleaning. Not that it did not move pretty well before but after cleaning and re-oiling everything, it is perfect and moves like it was new. No resistance at all.
And back to testing the RC37.1 test plate.
Woohoo! Can't ask for much better than that. I did a few more tests and I get between 36 and 38 which I guess is what the spread meant on the test block. Since I remember that you are suppose to take a few measurements and average it anyway, I think I am pretty good. Still lots of practicing testing actual blades, which I am sure is a little trickier, but with help from you guys, I now have a functioning hardness tester which I should have bought a long time ago.
Thanks again for all your help