I changed the O-ring on the distributor and cured that leak and now have discovered that the fuel pump appears to leak oil from the tube on it. Can I mash the tube flat to seal it or do I have to replace the fuel pump?
Replace it, and replace it soon! Your oil has gasoline in it now.. The faulty diaphram lets oil out and gas in!
Also make sure to remove ALLLLLL the old gasket material on the head so the new fuel pump will seat correctly.
I had oil leaking from mine and it was simply a clogged PCV system. All of the backpressure that builds up needs to escape somewhere and the vent tube on the fuel pump was the only place. Of course, if gas is getting into your oil due to a broken diaphram (I think this is how my wife got pregnant with our first child!), then you need to replace the whole pump.