rdaniel, very good.
1a. Pull forward and hold the top of the Lock Pawl Assembly (in your manual Page 84, part #24), or
1b. Push and release the handle coil armature ( page 86, part #6) which does the same thing as 'a' above...or
1c. Exactly as you said, pull reel mech and push on the pump arm with vigor until it kicks. Excellent!!!
2. Either the payout counter zero switch, or the Reel mech B switch are not closing. This is a CLASSIC example of the hopper/payboard not resetting after a pay.
3. See above, the zero and B switches are the ONLY two switches in the hopper reset circuit. Either of them not closing will lead to short pays and eventual no pays as the payboard wiper fingers advance, and can never reset.
Bonus Question --
When the payboard wipers step one step, also a pawl is unlatched (part #29 page 107) that allows a certain feature light to light up. Of course this is the winner paid light. If you pull the handle for a new game, both the payboard resets, and also the winner paid light turns off. If the light stays on, there is a good chance the hopper did not reset.
Good job...karma karma.