Spoke to Larry
www.cisflowtech.com tonight...he agrees the sediment has probably clogged the orifices, although he won't know for sure until he receives it and looks inside.
I'm betting though the tank is toast and the fuel filter split, hence the sudden loss of power, mpg and problems. I knew something weird was going on -- not a typical issue. It explains why the KE-Jet system was telling me everything was set and in closed loop...but I was kinda right with it being fuel-related LOL!
Distributor is boxed up and heading out. I will bump thread when I get an update.
I'll tackle the tank when my 300TE is back up and running properly again. Kinda in limbo until then.