It kind of sounds like you are sucking air in through the pump. Did you replace just the rubber O ring or the complete bushing?We need to post up some sort of warning that the governor mod is pretty tricky, I feel bad reccomending people try it and than they have problems... I think in Jakes "how to" he states it is for advanced mechanics/tinkerers.
Fill the filter up with diesel and/or ATF and pour some diesel in the top of the pump (remove the 'OUT' plug and pour it in there until it spills over), and I bet your problem will be solved.
Hey man sorry I wasn't saying you don't know what youa re doing or you are a sucky mechanic. The reason why I can trouble shoot most peoples problems quickly is that I tought pretty much all of this stuff to myself, no one showed me how so I know a lot of mistakes :lol: Glad you got it running right I bet your buddy is stoked on his new found power band :twisted: