Eric, OK good! That is exactly what I trying to ask. It seems to me if you are not getting anything in the cup the water level should be the problem. It looks like you are getting enough bubbles. Did you buy this new or used? Here is what I would recommend
1. Raise the exit tube all the way up. When I say this I mean the plastic tube, not just the foam covering. In theory this should give you the wet skimmate and then you can slowly adjust down. Although every one in a while mine would just go crazy and go from working perfectly to making lime kool-aid.
2. Make sure you have the right pump for this thing and that the impeller looks OK.
3. If these don't work I am thinking something wild. I am wondering if you are getting enough flow through your pump. It is kind of a tight area you have it in and I am wondering if you are kind of choking off the flow of the inlet of the pump, not necessarily choking it off, but restricting it so you can't get a full flow through there. Think of it this way, if you have a shop vac going you have a lot of air the shop vac is sucking up. Now if you have a shop vac going and hold your hand an inch in front of the nozzle the shop vac will not be pulling in as much air. Anyway this is just something wild and I hope I am wrong. I hope #1 will fix it for you.
Scott
Edit: I just saw where the inlet of your pump is and it looks like that will rule out #3. I thought your inlet might be closer to wall of your sump.