Tony,
Don't take out the power valve, it's there for a reason. But it must be sized correctly. There is a number stamped on the ring that tells you at what vacuum the valve opens. 2.5, 3.5, etc. First, measure your idle vacuum with a gauge. Then select the valve based on 1/2 your idle vacuum plus a half of a point. If your idle vacuum is 12", then your power valve would be 12/2 + .5, or 6.5.
As Mr. Fixit said, Holley does make a brass plug for tuners who want to remove the power valve. Have seen it used for two reasons. 1. Diagnosing throttle body to metering block vacuum leaks. 2. Changing the fuel enrichment curve on the secondary metering block if it has a power valve, to prevent leaning out at the end of a run.
I had a similar problem with a Holley fuel pump hitting the side of the
oil pan rail and not sealing at the gasket and leaking
oil.
Made a spacer plate or shim out of 1/8" aluminum the same size as the gasket. Then I put a pump gasket on both sides of the shim, and bolted the pump back in. Also, use a thread sealer on the bolts as they go through the casting into the
oil. But the leak stopped.
If the pump diaphram is gone, you'll likely have to replace the pump. FYI, Edelbrock makes an adapter for the bottom of a Holley fuel pump that lets you run your fuel-in nipple into the bottom of the pump instead of the side. Solves fuel line clearance problems.
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