Thus problem only when I start it up for the first time in the morning or if it has been sitting for a long time. When I start it it acts like its clogged up and a good amount of white some comes out. Could be my fuel filter has water in it and it needs draied or changed or my fuel lines are getting condisation in them bc they have rusted out? please help. Thanks.

 

I am having the same problem on my 96, it just started doing it 4 days ago. Right around the time I replaced the lift pump. So I started by bleeding the system from the bleed bolt but that does not seem to have done it I am going to check all fuel lines and bleed the system from the lines and see if that does the trick.

 

Most likely you're sucking air into the system due to rotted hoses.
The return line in red below will eventually rot out on every 12 valve, guaranteed.
Start out by replacing the 5/16" x 2' return line, while you're at it replace the feed hose next to it, 3/8" x about 2'. You will also need four new hose clamps.
Make sure you use diesel rated hose or you will be replacing them again soon.
Remove the fuel filter to gain easier access to the return line, might as well replace it at the same time.