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Anyone rebuilt the priming pump located on top of the fuel tank. I am wondering if in my case air is leaking into system,as the prime pump does not work

That could be a good culprit, I know this is an issue on old Cat engines I work on. I have not messsed with the priming pump but you may just bypass it and see if it cures the problem. 

I did some work on a 96 that we could not get to prime, i ended up replacing the check valve and the fuel line all the way from the tank to the engine. That did the trick. We could not pull fuel through the check valve, I suspect it was gummed up from sitting.