After reassembly, I was able to draw air through the fuel line with no vacuum on the vacuum fitting. What this means is that fuel would run out with the engine off.
Unfortunately I didn't do my research here and learn that about 10-15% of the people here have had success doing this rebuild. After taking it apart, I found the piston on the diaphragm was about 1/2mm too short- another member pointed this out in my other thread. Since there is no way to extend it, what I ended up doing was using a larger o-ring to make the seal. I went to McMaster.com and found a set of 25 Viton o-rings for about $10 + shipping. The o-ring in the kit is about 4mm ID x 1.5mm thick. I bought McMaster # 9263K694, which is 4mm x 2.5mm thick, for an effective OD of 9mm.
After replacing the o-ring, I had a good seal. Applying vacuum opened it up, and it also was open in the "PRI" setting.
UPDATE 7/16/13
I have sold out of these. You'll need to order from McMaster.com as noted above.
UPDATE 5/1/13
If you are in Canada or otherwise outside the USA, it is cost-prohibitive to send these, as postage is higher and the money transfer is costly. I have sent 5 of these to member HamamatsuSuzi. You can PM him to get the cost for one if you are in Canada.
Here is a pic of the new and old o-rings so you can see the size difference:
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