UPDATE:
So with nothing to loose, I was able to correct the spring location by widening the spring base a bit and track down a very small pin hole leak. Sealed the leak and put it back together.
IT WORKS. check the video out. The actuator will now hold vacuum with as little as one pump on the vacuum gun.
http://www.youtube.com/watch?v=MlkNWBNtaYo
Question:
What is the correct orientation for the actuator arm. Notice the slight angle. Does the angle point to the center of the engine or to the IH?