Thanks, but I am still a bit lost, maybe I can rephrase my question:
When I apply close to 0V at pin3 of the op-amp then I read about 3V between pin1 and ground, I take it this is the Gate-Source threshold voltage and just switches the mosfet on with very low current flow from Drain to Source (and producing close to 0V on pin2). As I increase the voltage on pin3 the voltage between pin1 and ground keeps increasing up until it saturates at about 5.8V. In my second test circuit without the mosfet (replaced with 1k resistor) and R1 at 1k the same op-amp saturates at 7.8V. So my question is why can't I drive pin1 to 7.8V when the mosfet is connected?
WRONG. The MOSFET doesn't turn on based on the voltage between gate and ground. It turns on based on the voltage between gate
and SOURCE. What you are saying is only true if MOSFET source is connected to GND, but it's not. You have a resistor between source and GND. (Think about it: why would the MOSFET as a lone device care about anything that is not directly across it's three pins? How would it even know that the far end of the resistor is connected to ground?)
By placing a resistor between source and ground, you have made a source-follower configuration which has negative feedback, even if you directly applied a voltage to the gate without the op-amp there. The ground voltage is no longer equal to the MOSFET source voltage. As the MOSFET turn on more based on some Vgs, more current flows in the resistor which makes the source voltage rise due to the voltage drop in the resistor. If the gate voltage stays the same, and the source voltage rises then Vgs decreases which slowly turns the MOSFET off a bit until it finds an equilibrium. THis is the negative feedback in a source-follower.
With all this in mind, if the MOSFET turned on enough so source = Vcc, then we must have:
Vgate = Vsource + Vgs = Vcc + Vgs_sat
(where Vgs i_sat is some gate-source voltage high enough to saturate the MOSFET).
But we have a problem...your op-amp can only provide a Vgate of Vcc at best (if you you had a rail-to-rail output op amp to make things simpler to talk about). This means that to get the MOSFET to reach the rails in a source follower circuit, the MOSFET must saturate at Vgs = 0V, but we know that if Vgs = 0V then the MOSFET is off. Contradictory.
If you got lost, then figure it out yourself the way you tried to in your response EXCEPT forget about the MOSFET saturating due to a voltage between gate and ground. It's the voltage between
GATE AND SOURCE that turns the MOSFET on, and obviously the MOSFET can't turn on if gate and source is 0V.
Remember, it's the GATE-SOURCE voltage that turns the MOSFET on. Not the gate-ground voltage. Do not ignore the voltage drop in the resistor.