Did you check the ohms at the controller for that valve.? I would uncover the wires and find the connection to be sure it is secure and waterproof.

To answer your question regarding using the old solenoid wires to connect your new solenoid, yes it can be done but like the previous post by homr mentioned you really want to find the original connections as you might have a perfectly good solenoid and just a bad connection. I've been to so many jobs that have poor connections at the solenoid (the latest was very conservative amount of electrical tape that taped the connections together), and what happens when those connections get exposed to the ground is that the controller will think there is something wrong, either an open or short circuit. Any easy way to find out if the solenoid is bad, like homr mentioned, is to perform a resistance test with a voltage meter. When you test the resistance at the controller it should read somewhere between 20-50 ohms, if there is nothing then you know there is open circuit somewhere. You would want to conduct this test one more time at the wires that go directly into the solenoid out in the yard. If you find you have resistance at the test in the yard then you know you have a wire break somewhere between the valve and the controller.