Sure sounds like you got air in the fuel system. Look at this old web page and scroll down to the part labeled bleeding the fuel system. http://www.j30.org/html/technical/articles/diesels.html

On your primary filter, do you have a hand pump to prime? I've got a Racor and it has a pump on the top of the housing that makes priming easier. I also open the compression relief levers and have someone run the starter while I bleed the system to get out the air.

The fuel lift pump is the pump on the aft stbd side and as you indicate has a diaphram. If the diaphram is shot, you'll either get diesel fuel leaking to the crank case, or diesel fuel leaking out the side.

[This message has been edited by Rhapsody #348 (edited 08-04-2008).]