Hi,
If you have an ignition spark at the plugs, I need you to try something. See if the engine starts using starting fluid. If it does and then stalls, I recommend checking the fuel pressure. Here is a link that explains in general how to test pressure. You will need a fuel pressure gauge, but most parts stores will lend one to you.
I realize you see fuel when the regulator is removed. However, the pressure may be too low for the engine to run. Also, the pressure could be good, but the injectors may not be getting the power to inject fuel.
One last thing. Could you confirm the model year and model? The 240's production years are between 1974 and 1993. Actually, my manual doesn't show the 240 until 1975. I suspect they started production mid to late year 1974 for the 1975 model year.
Please keep in mind, because of the model year, my technical information is very limited. However, I will try my best to help.
Take care,
Joe
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Sunday, March 12th, 2023 AT 3:03 PM