There should be a little platform under the idle adjustment screw that limits the upward travel of the linkage from the pump. The throttle linkage rests against it when you have your foot off the pedal.
Is it there? If not it will give the symptom you describe.
If you're not sure what I am asking, can you snap a pic of the idle adjustment screw?
I found this thread that talks about it:
http://www.peachparts.com/shopforum/diesel-discussion/125575-help-anybody.html