I seem to recall an issue with worn front axle mountings to brake back plates on the Hyster XL series that caused exactly this issue with brakes snatching and all or nothing brakes. Might just be worth checking the front axle mountings for movement.
I believe the truck was manufactured in 1997. Since the lift is 23 years old, I would suspect the brakes, brake hardware, wheel cylinders, master cylinder and all brake lines need to be replaced. Do not forget to replace all seals on the drum and axle. Before replacing anything, need to check your brake shoe adjustment. With the wheels off the ground and parking brake released, you should hear the brake shoe lightly dragging as you turn the wheel. If you know the brakes still have some material left, need to verify the wheel cylinders are not leaking and replace the master cylinder. Do not use old parts as they can fail anytime. If you have never worked on brakes, best to get a professional.