Thanks to all, I now have specific places to look.

 

Ahhh, you're right. Actually I was thinking about the 24V trucks. They have the fuel heater right on top of the filter head.

Here's a diagram of the filter assmebly for your truck. I'll pull the lift pump and pre-screen diagrams this afternoon.

 

Thanks Coal Train, is the wires coming out of the bottom of the screw on filter (16 on diagram) suppose to connect to anything? Mine are just hanging.

 

That should be for the Water In Fuel Sensor.

That wiring comes as part of the drain valve.

Off-hand I can remember if the 94 - 95 models used that sensor, I don't believe they did. The 96 - 98 models did.

Here's the rest of the stuff to look at for leaks. This is the rest of your fuel system in that area.

#1 is the Pre-strainer and heater element
#8 is the transfer pump
#16 is the fuel shut down solenoid.

 

Thanks again Coal Train, I'm gonna start with the filter, I waiting for it to arrive and a half decent day to change it and will move down to to prefilter or transfer pump if necessary. You and the others on this site are greatly appreciated.

 

This sounds a lot like the leak I had last year, and after doing some looking around, not such an uncommon leak. There is a flexible (rubber type) return hose coming from the overflow valve back to the fuel filter. Most of it is a hard line, but about 12-16inches is soft right between the fuel filter and engine. I had to pull the filter off, then it is held on by a couple hose clamps. Of course, not easy to reach, but a fairly simple fix. I just got a generic diesel line hose for about 35 cents. I just can't remember the size. My brother-in-law drove it like this for almost 2 months before he said anything to me.