I've been burning my fuse that controls my fuel shutoff solenoid, my glow plug controller, my engine temperature switch, my cold timing advance solenoid, and my cold idle solenoid. Today I found what had been smoking and producing an awful smell and it happened to be my water in fuel sensor. Why is this sensor smoking? Item number for the sensor is 1811164C2.

 

WIF sensor goes in the bottom of the fuel filter. It should not smoke; in theory it should ground out if there's water in the filter, lighting the light.

Unplug it and see what happens.

There is a fuel filter /heater/ element on top of the fuel filter. I could see this smoking if it shorted out somehow...

 

I believe the part you are referring to is actually a relay/amplifier for the WIF light. Little black box about 1" all around? Try unplugging it first. If you want it working again I'd try replacing it if that's the problem. If you're not worried about the light working and removing that fixes the problem, I'd just leave it off, mine was cut up when I got the truck.

 

the fuel heater wire, if plugged in to the wif sensor would be bad, the fuel heater is a self regulating restive short circuit with three contacts and can go bad, get real hot and cook the o rings on the very top of fuel filter housing, creating the possibility of air leaking into system.