i've taken the oil pump off and used a long 3/8" drive extension to knock out the bushing from the bottom up. also check the end play on the cam (may be difficult with the tappets having a spring load on them).The oil pressure at cold idle was roughly 75-80 psi, and at hot idle it would be lower. Hot, in gear and idling the pressure would be 30-40.
The bottom of the gear does look worn compared to an extra new one I have laying around. no longer has the beveled edge and the thickness is noticeably smaller. No grooves worn in it. And I can't tell what shape the shaft bushing is in.
That bushing looks to be a real pain to get out of the motor. Have to find a really long pair of needle nose pliers to reach down there.
An easy repair can be the Hughesengines gear designed to be run with ANY cam that is made by Crane. There just under a hundred bucks.