Hi,
sorry to hear that your lens isn't working, but from what you describe, it certainly is an aperture problem. If the lens had sentimental value, you could have it repaired fairly easily, but honestly, it's probably just not worth the money.
Are you a project kind of guy? If so, you may have some fun opening it up and seeing how it works...
The difference between the MC and MD lenses are mostly just the extra lug on the MD series that allow the use of S mode and P mode on the X-700; although in my experience that lug is not necessarily required for those modes...just set your lens on max aperture and let the camera do the rest. I never shoot in S or P mode myself, though, preferring A or M modes.
There Are some other differences in the lenses as well, such as the coatings being newer (better at reducing flare) on the MD lenses, and the fact that the MD lenses are smaller, lighter, and use plastic in some areas that the MC lenses use metal. My favorite are the MD ROKKOR (-X) versions because they incorporate the metal bodies of the first versions with the better MD version coatings.
Best of shooting!
Your fellow Minolta Bro,
Jed