Air bubbles in return jets

[Poconos]

I assume that Jandy valve is on the suction side? You're right in assuming the suction side is the leak source. If that valve is on the suction side try drying off that grease thing and putting a blob of silicone seal over it. I'm not familiar with those valves but silicone seal is great for plugging suction side leaks.
Al

[fog80]

I put a blob of silicone in the hole and then covered it with duct tape. I'm not seeing any bubbles or water splashes when i turn the pump off. I'm attaching some pics to see if you guys can identify problem areas. I think I may try to teflon tape some the threaded connection between the pump and plumbing union. Maybe even put some silicon caulk around the joints.

Could this air leak be causing my de filter pressure to go up to 20 after about an hour of running and the pump basket to stop filling up with water? Or is that more of me just fighting my annual algae war as I do every spring?

[Poconos]

The air leak wouldn;t be causing the pressure to rise. It's most likely the algae war doing it. I think you have the situation under control. Teflon tape is usually all that is required.
Al