I would like to see those pictures too.. because that would go against everything I've learned in plant physiology. are you really sure the fluid wasn't coming from a part of the ring around the hollow space? because the xylem would be somewhere around there, so it wouldn't be strange to see some fluid coming from there.
but it would be really strange if fluid was flowing within the hollow middle of the stem. I don't even know if it's physically possible, since the larger diameter tube you have, the harder it becomes to get the water to go up.
I don't think it flows through as such. I think it accumulates in the stem, providing buffer storage and is depleted at some points, and accumulated at others.