Thanks for the input. I sources a new hose, pump and worm gear, but they didn't have the 'filter'. When I got the filter out, all it was is a plastic screen, probably to prevent things like wood chips from being sucked up, but it was clean. replaced it all and I'm still not sure if it's oiling right... but I'm not sure there could be anything else that would cause it to not oil right. Unless there's a vent somewhere that's not functioning properly and preventing the pump from flowing properly due to building up a vacuum.
Hammermechanincman - Yikes! A small area of the plastic cover you have removed got hot enough on mine to melt due to the chain/bar temp, and the side of the bar that was down has some bluing due to the heat, but nothing as bad as that! The bar getting as hot as it did is what 'tipped me off' that something wasn't quite right.