It says in the Haynes book "trucks with the double spout connector incorporate a special shorting bar remove shorting bar? I believe the two red wire plug end with the grey square cap is the spout, it is by the ecm. Question is do I remove that grey cap? Is that the shorting bar?

 

just remove the grey cap then time engine.

make sure you replace it.

 

The SPOUT connector will be near the TFI ignition module. On older trucks they were mounted on the distributor; on 92-up trucks they were mounted on the drivers side fender. If you are unsure of what you have found, pull it, and verify with the timing light that the timing doesn't change when you rev the engine.

 

Can't seem to get it off by hand, Is it ok to pull it off with a pair of pliers? Don't want to ruin anything.

 

Be carefull . If you crush it it may not be good any more. Try some silicon spray down the edges and see if that works to free it up.