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Draining the fuel filter/water separator canister. You will want to either place a container under the vehicle to catch the diesel (a hose pushed on to the drain tube sure prevents a mess), or pump the canister dry once you get the filter out, in which case you won’t slide the yellow lever to "DRAIN." This is a good occasion to inspect and clean the interior of the canister, so removal of the filter and heater is advised. (Remember, the plastic heater standpipe is LEFT HAND THREADS.) A 7/8" crow’s foot wrench works best, but I have loosened it with a regular open-end wrench. Pull off the heater wire connector with needle-nose pliers. Now you can clean the canister and check for cracks or leaks. You’ll be amazed at the crud in there.
Disconnecting hoses. There are two hoses connected to the top of the pump and one at the bottom. The two top hoses are protected by a removable clip-on heat shield (just yank it off). You can only get to the clamp on the pump side of that bottom hose. And finally, the water drain hose at the front passenger side of the filter housing.
Remove the two bolts attaching the fuel pressure regulator with 10mm and carefully pry it back from the filter housing, taking care not to lose the O-ring. Good time to clean the screen and examine condition of O-ring. There is also a short section of 5/16" hose that may need to be replaced.
Separate the wire harness connector on the passenger side of canister and remove positioning clamp with 8mm. It will NOT slide off the tongue of the clamp as you think it might, since the tongue is barbed. (Remind you of anyone?)
Disconnect wires connected to the canister, two on drivers side, one at bottom rear. (So now you want to know what they are? Aw geez, you’re one of THOSE GUYS: Oh, all right: on the driver’s side, the top connector on the side of the Water Filter/Water Separator Assembly is the fuel heater connection; the connector directly beneath it links to the Water Sensor; and the connector on the bottom rear of the Assembly is for the filter restriction sensor. I believe it is a vacuum switch. Note: In 1996 the fuel filter restriction sensor was moved to the fuel pressure regulator, driver’s side of filter housing. Happy now?)
To continue: Two bolts holding down the filter canister are 13mm. You can lift the whole filter assembly up and forward out of the way with the long blue hose still connected at the bottom
Here's a picture with the heat shield removed.




