Sorry to join late to the party, but I see a couple things that seem odd.
You have already discovered that your fuel lever is not moving correctly and it also sounds like the solenoid is not working correctly either, you should have way more than 1/2" of travel in it.
Also, Your fuel stop lever looks a bit abnormal... kind of home made actually.
It looks as if it was made from a piece of aluminum flat bar and I wonder if the bottom part that is supposed to hit against the lower screw ( at full fuel ) is not quite shaped right, It appears the screw is hitting on that weird corner and the top is supposed to touch against the upper screw when the solenoid is deenergized, ( fuel off ) and that isn't happening either, BUT the real issue here looks to me like your fuel rack is stuck.