can the pump rub be fixed by a little jb weld :p: and the transfer case upgrade kit?

As far as I know, yes.

yes, it has been discussed a lot on here. Do a search for "pump rub" and you'll find more than you ever wanted to know.

yes do some searching. basically clean the are real good let it sit for a day then reassemble and refill. Which pump fix you use, is up to you. I myself put the Merchant Auto in, it's a much more stout looking piece and I prefer to only fix things once if at all possible. Than again I put mine in before the hole appeared and my case at 70,000 had very little wear so i was one of the more lucky ones.