Based on my Inline Four experience (this is a diesel engine I see);

- Oil Pump to Block has no gasket. (This has been established already)

- Every engine rebuilding, oil pump replacement tip I have ever read
mentions the need to pack the pump with something prior to starting the
engine.

As noted the pickup tube is in the oil but the gears are above the usual
line. The gears are spinning but not picking up enough suction in the
air to grab that 1st bit of (thicker) oil.

Vaseline seems like a not too bad idea, but what ever you use will end
up in the oil so look to do an oil change right after.

Google is a wonderful thing;
<http://volksweb.relitech.com/vanagon3.htm>

>
> Before starting the engine, I removed the coil wire and cranked the engine over. Since the last time the engine was run was in November of 1996, I wanted to establish some oil pressure
> before starting the engine. To my dismay, the oil pressure light never went out. At this point, I was not sure if I could trust the oil pressure sender, so I removed it and cranked the
> engine again (and again). I was hoping to see great spurts of oil spraying out of the hole where the sender used to be. Nada. Now I was questioning myself...had I installed the oil pump
> correctly? Should I pull the oil pan and check the pump? After a few minutes of looking at the old oil pump that I had removed, I decided to remove the distributor and try to spin the
> pump with an electric drill. I found a socket that fit on the end of the oil pump shaft, and chucked it (along with an extension) into a 1/2" drill. After spinning the pump for about 15
> seconds, I was getting worried- no oil out the sender hole yet. Suddenly, the drill motor bogged down, and oil started spraying out the sender hole! It's a gusher!! What a relief! I guess
> the oil pump just needed some help re-establishing its prime. I re-installed the pressure sender and distributor, then cranked the engine with the starter. Oil pressure light went out, just
> like I hoped for.

hth,
TBerk