1988 240 141K automatic

I posted over the weekend about this car before I knew much about it. Now I own it.

A dealer maintained car with a book of maintenance stamps up to 125K.

It has been sitting for a year because of a no start situation that resulted from continued flooding of the cylinders with gasoline. Stared one nice spring morning and then stalled never to start again.

What I learned today:
1. It has a new fuel pressure regulator on it and fuel pressure measures shy of 40psi.
2. Owner told me he replaced the temperature sensor
3. New plugs, plug wires, coil, and distributor cap.
4. Compression a mixed bag of 80, 110, 125 and 150 (this was after oiling the cylinders because I assumed they were dry from excess fuel)
5. Good blue white spark at the plugs.
6. The timing belt was off one tooth on the cam as well as the distributor. I moved it to the correct position on the cam sprocket, and removed the distributor bolt to move the distributor enough to point to number one at top dead center. Belt did not seem slack like it would be prone to having skipped over a sprocket.
7. The dealer that looked at it said the computer (554) was bad, but would not guarantee purchasing one for $800 would fix the problem. I swapped it into a running 88 240 and it is just fine.
8. When doing the compression test I noticed that the cylinders not being tested were throwing a lot of gasoline vapor out the open spark plug holes. I disconnected the injectors and installed the sparkplugs and while it did not start you could tell that the residual fuel in the cylinders caused it to “try” to start. Moved the distributor by hand during the cranking with the injectors unplugged and found the “sweet spot” where it wanted to start. Tried some starting fluid with no change.

What would cause the system to dump so much fuel into the cylinders? I tried starting it with the AMM disconnected with no change. There does not seem to be any place for a huge air or vacuum leak. Throttle position switch seems to be adjusted properly.

Thoughts or ideas? Thanks.

Randy