It sounds to me like the knurled nut, or rather, the screw that it engages, has turned to one of its extreme positions and is now 'stuck' there. I would give it one more go to turn with the knurled nut, inward probably, to see if it will come loose from that extreme position. If not, it should be possible to remove the plate that the knurled nut is affixed to.
If I were you, I would try to remove it with the pump still in the car to have a look what's going on behind and to try turning the screw with a proper screwdriver. There should be no oil leaking out or anything. If the engine still runs (although now with the adjustment way out of spec, too high), this would indicate to me that the pump is not damaged.
On the erratic idle I would, after you get the pump back into order, go through the idle fuel mixture set-up procedure (including the linkages, and in particular the air flap ("venturi") on the inlet manifold - it should be adjusted so that it is practically binding - oftentimes mechanics will mistake this for the idle air adjustment), make sure about my ignition timing, all with a CO meter at hand.
The hesitation could very well be caused by linkages that are loose / sloppy. Are the ball joints in good shape, are the brass bearings on the transverse rod ok, and is everything tight?
Cees Klumper in Amsterdam
'69 white 280 SL automatic