GET SOME NEW ONES! i had tose on my Carrera Kraken SE i didnt even try them out! I got some magura-rond quake air's! 8o mm of travel £240 reduced to £110 in a sale at halfords! Get yourself some 2002/2003 forks? Try n get urself a bargin! hope i helped i suppose i didnt really answer your question! (sorry) MIKE!
If they were stripped and greased properly then they would probably stop seizing - budget forks never seem to be prepared properly. However Mike's right - they are going to be a poor fork.
IIRC Chainreaction are doing Pilot XCs for £120 (don't get the pilot C for £99 - dreadful) or Marzocchi MXCs for £140 (much better than a budget rockshox fork).
will sell you marzocchi exr's for virtually nothing (well £80ish and for a sus fork that is virtually nothing) and there are a couple of variants before you get to the MX's at £130
from the reviews i've read you can't really go wrong with them in terms of value and quality (assuming they'll fit your headtube, natch) and hey'll almost certainly be better than the fork you have (even when it was working properly)
just depends on your budget etc - get the MX comps and they are probably good enough that you'd want to switch them onto a new bike as and when...