Sounds to me like your fuel pump rod is bent, binding in the hole. I would lock a pair of vice grips on it and either lever it out or rig some sort of slide hammer to get it out. I'd be very concerned that the lobe on the cam may be toast, and I also wonder how it moved enough to work the mechanical pump if it's stuck that tight? This may be the start of a very bad day for you, my friend. If you're very, very lucky the old rod will come out and a new rod will work just fine. Once you get it out chuck it into a drill press to see if it runs true....