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Yep, your shutoff diaphragm at the rear of the injection pump has an internal tear. A search should give you all the info you need to replace it. Once you fix that you should clean out the vacuum lines too. The oil in them will cause leaks eventually.
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1979 240D- 316K miles - VGT Turbo, Intercooler, Stick Shift, Many Other Mods - Daily Driver
1982 300SD - 232K miles - Wife's Daily Driver
1986 560SL - Wife's red speed machine
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