Timing is supposed to be set with the cable all the way in.
If not, then the timing will be retarded with the cable all the way in, and your mileage will suffer. This will be the case, even though your current mileage is better than before the rebuild. This is due to 2 things: 1) no leaks and 2) calibration of the pump. So, overall your mileage may have improved, but with retarded timing, your mileage may not be as good as it can be.
There is a possibility that whoever installed your pump may have knocked off the idle-up lever. It attaches to timing-advance cable, and connects to a lever on the side of the pump. Most VW diesels after 1987 have the idle-up lever on the side of the pump.
It's also possible that whoever installed your pump, installed an off-the-shelf rebuilt pump, rather than rebuilding your original pump. If they did, then you may have an early pump which lacks the idle up. If that's the case, and the timing is already too far advanced, then pulling the cable with no discernible effect would be the outcome.
Perhaps someone can mine the archives to show pics of the idle-up lever.