o-rings X2; I have had a number of air tools that had air leaks; upon take apart, the o-rings were typically the problem. Take it apart, clean it up; replace any bad o-rings, put lots of air tool oil all over the parts when re assembling, then run a bunch of it through the air inlet and see what happens. I bought a used Astro Pneumatic 1/4" impact wrench that had a really annoying air leak at the trigger; took it apart, cleaned the valve, lubricated the bore the the valve went in, and ran a bunch of air tool oil through it; all the while working the valve, took it apart/reassembled a couple of times. The air leak went away and all is fine now! Give it a try you've got nothing to lose; maybe some time and a couple of bucks worth of o-rings; if you still can't fix it, send it in!