ThEFERMANATOR you're my hero 

Thank you, thank you!
 
I re-read your posts and went back to the motor. As you suggested I held the sleeve with the pliers and pushed out the piston with a wood dowel, it took some force, that little sucker was stuck in there big time. 
 
Here's the sleeve out:
 
 
 
If I understand you right, The sleeve is supposed to be mounted like this, right?
 
 
 
As you stated above, since I don't run the VRO I can remove the little oil plastic piston and get rid of my problem, should I remove the sleeve too? 
 
Thanks you for your immensely for sharing your knowledge. 
 
Joe