Something still has to be wrong with the pump. You've literally eliminated the entire suction AND pressure sides by totally by-passing both with straight PVC. Since the previous owners admitted they really didn't winterize very well, perhaps something got damaged within the body of the pump's wet-end (form/shape, impeller, diffusion, something) that you can't see with the eye. Enough moisture coupled with the swelling of some freezing temps may have been just enough to prevent your wet-end from maintaining the seal/force required to "pull" that water though. That's all I can figure at this point. Did you get a chance to watch that video? Did anything seem to ring a bell compared to what you did?
I'm assuming you tried the cling-free trick Chiefwej suggested huh? I would wrap that entire wet-end if I could. Other than that, I'm thinking there's something wrong in that wet-end. Also, I "believe" you are using a 1-speed motor, so we have no way of knowing how well it's turning. Hopefully you have a good indication as to whether that motor is really spinning enough to create that pull for the wet-end. That's just something we can't tell from behind our laptops.