sorry to bring this oldie back up, but im having the same problem. There is a hollowed out tube underneath the hours meter a little towards the block that is leaking on a 96J D5, looks just like the picture NoBudgetMining posted above. Is there a simple O-ring in there that could be leaking? Otherwise, assuming everything internal is kosher, what is the point of this valve if not to be able to open and close it to let fuel out? Meaning if its leaking, isn't it just the bleed valve that is failing? Otherwise, wouldn't that valve hold back a failure in the transfer pump yall have been describing if its functioning correctly? The leak happens running or not, so it's not under pressure. I've been looking for some kind of schematic for this part but haven't found anything yet. I'm still holding out hope its just a simple o-ring?
This started after I had to drop the cup on the initial fuel screener held on by that banjo ring as rust had eaten a hole in the metal cup, so I welded that back up and replaced the screen and that stopped that leak, but as soon as I started it back up (with no doubt a ton of air in the line) I see this new leak. I figured I was going to have to bleed the fuel system after having all that air in there, but I just let fuel run out of the cup for a bit before snugging it up to the O-ring trying to purge as much of the air I could there and it fired right up, but then this other leak started....
Thanks everyone.