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Ok. That’s what I thought.   Where should it go to? A fuel line? 
what are the effects of no fuel return? Could it lead to sputtering and no fuel flow ??

Actually, the red cap is blocking off the vent line. That should go to the carbon cannister

The middle line is the return.

When is the car sputtering? How have you ascertained there is no fuel flow? Have you put a fuel pressure gauge between the fuel rail and one of the carburetors?  How old are the fuel lines? Is the electric fuel pump running? Is the electric fuel pump installed? What is the condition of the fuel filter?

people who took car off  the road said it was sputtering.. all assumed it was fuel flow issue and ran ok off a jerry can at engine.  can car run ok with no return?

does a 260 have electric fuel pump or manual like a 240?

You have a return line. I see a hose attached to it. Like I said before, the capped off line is a vent line for evaporative emissions.

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If the car is in stock configuration, it has both a mechanical and an electrical fuel pump.

Download a copy of the FSM. The link is in my signature. (Hopefully you're not using a phone for this site. You miss out on some good features.) The EF and FE sections have a lot of information on the fuel system in your car.

In the meantime, you may want to start tracking down answers to my questions, or pose some questions in response to help bridge the gaps in your knowledge. Continue to figure out what the previous owner(s) changed and document it. Then you can figure out how to make it work right again.

8 hours ago, Shawninvancouver said:

Ya. Don’t they just have a stock mechanical fuel pump ??

Not if it's stock. Like I said, download the factory service manual and read sections EF and FE.

Apparently it’s the vent that is capped off with red cap.  Fuel return is there in white heat cover.  I know the mechanical fuel pump.  Where is the electric fuel pump.  Can someone show me this??

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