Spin dynamics for arbitrarily polarized and very dilute solutions of 3He in liquid 4He are described. We began at a very fundamental level by deriving a kinetic equation for arbitrarily polarized dilute quantum systems based on a method due to Boercker and Dufty. This approach allows more controlled approximations than our previous derivation based on the Kadanoff-Baym technique. Our previous work is here generalized to include T-matrix interactions rather than the Born approximation. Spin hydrodynamic equations are derived. The general equations are valid for both Fermi and Bose systems. By use of a well-known phenomenological potential to describe the 3He-3He T-matrix we calculate longitudinal and transverse spin diffusion coefficients D bottom and D ¦ and the identical-particle spin-rotation parameter Mgr. We confirm that these two diffusion constants differ at low T with D bottom approaching a constant as T rarr 0, and D¦~1/T2. Estimates of errors made by our approximations are considered in detail. Good agreement is found in comparison with data from both Cornell University and the University of Massachusetts. We find that the s-wave approximation is inadequate and that mean-field corrections are important. Comparison is also made between theory and the recent UMass viscosity measurements.