Hello Cole, i'm no expert, i just know what i've read and what i've experienced on my own car
This is the excerpt from the post i i added earlier, from Blackforest, who rebuilds these pumps, so a real expert!
For the above concern for Magruder, the easiest thing to do is simply remove the dipstick and let the oil drain out.
Then reinstall the dipstick (some more oil will ooze out) and drive the car a few miles.
Park the car and remove the dipstick.
No oil comes out? Reinstall dipstick and drive 10-20 miles and recheck.
This will allow you to determine how bad the o-ring leakage is.
If it turns out to be minimal and a rebuild is not in the budget, then suck out the oil completely and fill with fresh.
I would set the oil level a little low, as it will overfill regardless.
The oil level is set by placing the dipstick in the recess only, NOT screwing it in.
In answer your other questions, again, i'm no expert, but common sense dictates:
4. a. If the oil level remains the same, I'm good; if it rises, does that mean that the FIP needs to be rebuilt or should other things be checked? - i think if excess oil or fuel is migrating in, poor seals can be the only reason, where else could oil or fuel be coming from?
b. Could excess oil in the FIP affect the motor's performance? - i'm not sure, but excessive oil in the engine can cause considerable problems, so perhaps it's the same for the pump, perhaps too much oil means too much pressure, and as someone else said, if fuel is mixing with the oil, the lubricating quality will be compromised, i'm just guessing here
c. If there is excess oil in the FIP, is it expected that it will be released through the red cap/vent? In which case, oil seeping out of the red cap is ok, right? - excess oil has to escape from somewhere, and i guess the cap is the only route, so better escaping from there, than building pressure up inside the pump, but still shouldn't be left, it needs investigating
d. Is it possible that the red cap may seep oil even if the oil isn't too high? In which case, any oil seeping out is ok and leave the cap alone? I'm focusing on this because we thought that any oil seeping out into the motor and floor was a negative and needed to be stopped. - in my opinion, the oil level should not be high enough to seep from the cap, it's there to top the oil up, or change the oil, and to vent vapour or air, my cap is clean and dry, and i expect other owners, with no problems, would say the same