No, it's supposed to be like that, it's connected to a ball link on both ends. Flops all over the place.
I'd suspect an ignition problem rather than a fuel problem -- unless you are WAY rich, with black smoke blowing out the back!
Dont' forget the fuel pump/fuel pump relay and fuel filter -- low delivery will cause cut-out on acceleration, too.
1972 220D ?? miles
1988 300E 200,012
1987 300D Turbo killed 9/25/07, 275,000 miles
1985 Volvo 740 GLE Turobodiesel 218,000
1972 280 SE 4.5 165, 000 - It runs!