Ha, was trying to get the hose off the barb to check to see if anything was somehow destroying the seal and i managed to jiggle the intake pipe off, instantly water started pouring down.
Why what is...the water going into the sump from the overflow? I think thats because of the Durso standpipe...its normal I think. That air hole at the top of the standpipe is letting air in so it works like it does....the air has to come out somewhere.