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Sounds like the injectors may not be happening. I was about to suggest that you use OBD Diagnostic Test Mode 3 to verify that the ECU is able to pulse the injectors, but just realized your '89 740 is a turbo. The North American market B230F Bosch fuel injected engines were upgraded to LH 2.4 in 1989 and had OBD(-I), also the B234F 16-valve was LH 2.4, but the B230FT remained LH 2.2 for another year or so. So failing that thought, did you pull each of the spark plugs after cranking to see if they're wet? If it's air starvation or a blocked cat as some suspect then they should still be wet with fuel. If you've got a good strong spark then the distributor Hall sensor and power stage are presumably okay and if you've got decent fuel pressure then the system relay, fuel pump and fuel filter are presumably okay, but that still leaves the fuel pressure regulator and injectors. Like you and others, I'm smelling a bad RSR. While you're at it, you should also check the ballast resistor pack for signs of corrosion (on the left front fender).
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Dave -still with 940's, prev 740/240/140/120 You'd think I'd have learned by now
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