Alright, no success was had, and here is all that I tried. I rotated the head to put the discharge port higher, I played extensively with the crankcase fill plug to see if venting would have any effect, I have plugged the port in behind the front seal, I changed out the mineral oil that I was running and put in 20W-50, with both oils, I have run both oils from 2-10oz of oil, and it still pumps out oil. I did make some gains, but it really seems that not much can be done. I will be putting in a Oil removal/coalescing filter with an oil return line to the crankcase, followed by an inline disposable paint gun filter.
All in all, I am into this project ~$200, and have another $70-100 to go. Oh well, the cool factor alone is well worth it.
Thanks for all your input guys, it's too bad we couldn't get this solved, but I don't think that it is solveable.
Dave C.