It makes no difference if you ruined the shaft seals or not when you installed the pump. That has nothing to do with the pump running the engine or not. It will run fine with no seals, but the engine crankcase will quickly fill up with diesel fuel.
I don't understand the fuel pressure gauge nor the reading you're getting. That pump is actually two pumps in one housing. The low pressure pump runs from zero up to around 60 PSI, depending on RPMs - for most models with a spee and/or load advance. It has to change with speed since it runs the timing advance mechanism. That is the low pressure pump. It also cannot have high pressure fuel being fed to it since that will screw up the advance. Zero pressure being fed to it is fine as long as fuel flow is available. The other pump is the high pressure side the sends fuels through the injectors at pressures over 1000 PSI, sometimes over 3000 PSI.
You say you rebuilt the pump - so I ask, what exactly did you do? Even a certified Standyne/Roosamaster pump shop does not really "rebuild" those pumps. It's not cost effective. They just pull them apart, replace a few small parts, reuse as-is the major parts, and reseal and calibrate - that's all. $50 in parts, two hours labor, and often a $600 repair price.
I worked in three pump shops and can probably tell you what you need to know. But, it's a waste of time unless you specify exactly what you have already done - or haven't done.
The pump is not all that complicated. Little rotary vane pump in the back that feeds low pressure fuel through a metering valve - and then on to a cylinder with two little round pump plungers. They are forced in and out by riding on cam lobes as the engine spins. When they move, they pump high pressure fuel through a common delivery valve, then though a fuel distributor that decides which cylinder gets that fuel charge.
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Today's Featured Article - Tractor Traction - by Chris Pratt. Our first bout with traction problems came when cultivatin with our Massey-Harris Pony. Up till then, this tractor had been running a corn grinder and pulling a trailer. It had new unfilled rear tires and no wheel weights. The garden was already sprouting when we hooked up the mid-mount shovel cultivators to the Pony. The seed bed was soft enough that the rear end would spin and slowly work its way to the downhill side of the gardens slight incline. From this, we learned our lesson sinc
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