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You're going to find some significant (and probably simple) thing wrong with it. These results are QUITE far off, and the exhaust probably smells like fuel. At the least, and cheapest, you've got a vacuum leak. There shouldn't be any connections off on the intake manifold and throttle body.
If that's all ok, the intake hose (big black plastic pipe from AMM (air mass meter) to intake could have a hole, or series of holes. Take it off and look at it under good light. Replace if defective.
If that's ok, the intake manifold gasket or injector seals could be leaking badly. Usually, these things make the car run quite poorly and the result isn't usually a rich condition which is what this sounds like.
So a couple things are in order. First off, the tuneup parts, cap, rotor, wires (esp the coil wire!) and plugs. Change the plugs no matter what. Easy and cheap work- but be careful not to cross thread #4, that's a common problem.
Next, check the timing. If it's quite far advanced it can have a very significant effect on emissions. Don't force the distributor- a lot of 240 distributors get stuck in the block and don't like to turn. If it looks close, leave it for now. Soak it with PB Blaster or similar if it is stuck though.
The fuel pressure may be too high. This is controlled by the fuel pressure regulator, which is right on the front of the intake, right behind the distributor and PS pump. It's got a single vacuum line that loops around to the front side of it, the back side is connected to the steel fuel rail that feeds the injectors. Take off the hose and see if any gas is on the vacuum side. If there is, replace it before going any farther.
I would try to check it at a shop on an analyzer before getting it retested at this point in the process. The next item to look at and verify is the engine temperature sensor, which is under the intake between cylinders 3 & 4. It's a bit hard to get at but with a strong light you should at least be able to see it and verify that the wire is still connected. If it's not, it'll think the engine is stone cold and make the mixture very rich. Check also for deterioration in the engine wiring, both near this sensor and at the grey plug on the firewall. Rotten insulation is bad news, and that's about the only thing that may keep you from getting this done in a couple of days.
The basic mixture can be set by a screw on the AMM, it's hidden under a plug if it's never been fiddled with. This is done while on the shop analyzer (or follow alternate instructions w/ LED in the 700FAQ).
The last thing that could be confusing the fuel injection is the O2 sensor. Hopefully everything will fall into line with those other fixes. The Bosch sensor isn't cheap (3-wire heated type = $180) though there is a cheaper Ford replacement, requiring a couple of splices but it saves $$.
Good luck with it and post back with results.
The good news is that the 88 is the last year of the LH-Jetronic 2.2 Fuel Injection and it IS pretty easy to work on with normal tools and knowledge.
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Rob Bareiss, New London CT ::: 86 244DL, 87 244DL, 88 744GLE, 91 244: 808K total
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