I have had them leak from the head seal, though this does seem to be a much more frequent issue on newer TDI pumps than on Volvos. My '83 760 is off the road right now because of a dumping head seal, though, so it does happen.
Sounds like your hard start and rough run afterwards is probably due to the pump leaking and losing prime, but checking pump and cam timing and valve clearance would still be a good idea as well, since those are other common causes.
Congrats getting it running!
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