That gear really looks bad... I started this thread and have two very strong summers on the motor rebuild... Sounds like you bled the oil pump.. Did you remove the little screw until oil comes out? I marked my oil tank with a sharpie and did the premix with the fuel for a full tank break-in. This way by the time you are just running the oil pump mix, you have the confidence the pump is working... Good luck... The motor rebuild looks good...