No, you can not run them while they are diluting the oil. The diesel fuel will thin the oil and it won't lubricate the pump properly.
I'm pretty sure all you need to do is get the lift pump rebuilt for that problem. When I did mine it cost $100 said and done. That was 7 years ago so it is probably twice that now.
Call the guy in Iowa and ask him prices on rebuilding the lift pump and the big pump. I wouldn't be too excited to overpay for that SMD with a known problem like that. It would certainly be a barter point.
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Today's Featured Article - The 8N and the Fox - by Zane Sherman. Dec. 13 1998, Renfroe, Alabama. Last niht I dreamed about the day that I plowed the field of about 10 acres over on what Jimmy and Dandy called the Ledbetter field. I was driving the 1948 8N Ford tractor that Jimmy bought in 48 new This was prebably in about 1951 and maybe even befor the house was built. This would have made me to be about16 years old and I drove the tractor for nothing and would have paid to drive it if I had had any money which I didn't, but neit
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