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I just built a drill rig onto a 1995 F-700 4x4 with a 7.0 L gas engine, fuel injected, has a govener on it. Use to be an Oregon Dept. Of Forestry vehicle , was well maintained, low mileage (98,000). My problem is the truck backfires loudly when use ing the gears to slow down going down hills, otherwise when accelerating it runs fine. Just changed the plugs,wires, cap & rotor, and have recently changed the EGR valve. The truck has all the smog stuff on it, it's California smog compliant.
You are getting unburned air/fuel past the exhaust valves when you run high rpms with the throttle closed. Could be a leaky injector, or a weak plug or wrong throttle setting. (WAGS all I admit)
Does this thing have OBD II? Or OBD I? Pulling codes might show something.
This will lead you into an endless series of fuel injection videos:
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