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I know this doesn't explain why your CS injector doesn't squirt, but based on Service Bulletin # 135 from January 1990 (applicable to '89 and '90 740 and 740GL), that 3-2-1 may be a false code, due to a circuit modification.
As a quick check, peel back the connector boot and see if the Blue-Green + wire has been disconnected, taped off, and replaced by another wire (color unknown).
If so, you can confirm the modification by checking for continuity from CS pin 2 to
starter auxiliary terminal 15a or 16.
Post back with your findings and I'll fill you in on the details.
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Bruce Young '93 940-NA (current) — 240s (one V8) — 140s — 122s — since '63.
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