Congrats on finding and fixing the problem. That stream looks like an 18 year old. Next time lube the shaft and pump housing and impellor with dish soap and a little water. Yes the water is suppose to shoot from the hole in front.
I ordered an impeller yesterday and received it today. It's not a Yamaha. It was tough to slide onto the drive shaft and tough to get into the pump housing, but I got er done. This is what it looks like now. Is that spit supposed to be coming out the front?