Yes, that's the damper...you can adjust it using the nut and the screw on the throttle arm so it can allow the arm to go more backwards. Failing this you can remove completely. Many VE pumps don't have the damper installed and they work just fine.
On a second thought if you are using veg your issues might also be related to it...sometimes veg can cause the governor and the weights to become 'sticky' and the anti stall might not be kicking in as it should when you dip the clutch. I would suggest adding a bit of petrol to clear things up or even running a tank of diesel.
On a second thought if you are using veg your issues might also be related to it...sometimes veg can cause the governor and the weights to become 'sticky' and the anti stall might not be kicking in as it should when you dip the clutch. I would suggest adding a bit of petrol to clear things up or even running a tank of diesel.