Im a newbie. I have read that I need to drain my fuel/water seperator at every fill up but I dont know where it is or how to do it. Any help is appreciated.

 

On your '96 the water separator is at the bottom of the fuel filter. There is a round valve with a hose attached to it (maybe?), just push up on it to drain the filter. Collect the diesel that comes out in a clear container and see if there is water in it. Most likely there won't be but you can base future drain intervals on the amount of water you see each time. I personally never drain mine, never have any water in it. It has a lot to do with your climate and how full you keep your tank. The fuller the better.

 

I have had my CTD for a little over a month now. I checked the separator 3 times so far (one fill-up and one when changing the filter), and no water at all.
I did notice the wires for the sensor had pulled out, and I was going to order a replacement, but with no water found in there yet, I am not to worried about the sensor not working.

 

After 100,000 miles changing the fuel filter and cleaning the pre-filter every 12,000 miles I have found only a drop of water in all of the time for the exception of one time. I found out on 3 different diesels that I drive that if I fill them up 3 times in a row at a certain gas station I don't get a half mile up the road when the water in fuel light comes on. For the next three days I am draining the fuel/water separator 4 or 5 times a day. They dipped their tanks for me and said it was not them but I brought the third vehicle in and three tanks later I was pumping water out of the separator. The fuel in water indicator is very important. Get it fixed as soon as possible. My wifes 2000 S-10 diesel (made in Brasil) did not have a transparent fuel separator bowl and no sensor. Cost $3000.00 dollars to fix all of the damage from not knowing. I have since took out the stock fuel/water separator and installed a U.S. brand with a transparant bowl and also installed a sensor with a nice indicator light in the dash. Get it fixed quick.