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HUH?
I am supposing you are talking about the injection pump with all the high pressure lines on it and you are talking about the timing plunger leaking. That is the only plunger type thing i can picture that is near the intake manifold (what you are calling the block).
To remove the injection pump ... loosen all the lines at the nozzles, be sure you loosen all the bolts that are used to mount the pump to the engine. There are 3 9/16 nuts holding the pump to the top flange and there are 3 5/16 bolts inside the little fron cover holding the pump drive to the gear and DONT DROP ONE OF THEM DOWN THE INSIDE OF THE ENGINE !!
Dont remove the tower cover with the pump as you will mess up the timing.
After the nuts and bolts are removed, you can remove the pump with all the lines attached to it ... it will look like a huge butterfly.
I would think the seals are gone in the pump from the diesel fuel drying them out ... natural phenomenum (?)
good luck in your task.
To answer the question about the extra fitting on the #1 injector. This a blank (so to say) so that you can fit a pulse adapter on the line for timing. It does not matter which way the sleeve is (up or down). Acutally my plastic sleeve is missing, I have my timing set with a lumericity (sp?) probe as this is a much more accurate way of setting the timing. Because it actually 'sees' the burn in the cylinder. The other way (pulse) just assumes that after a preset amount of time the fuel has ignited in the cylinder. We all know what assume gets you.
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