88-7.3 wont start / fuel problem ?

I have a 1988 E350 XL 4x4 Ford Van with the 7.3 idi no turbo. Last week it started having problems wanting to start after sitting for only a couple of hours. WTS light comes on for about 3 seconds, I cycle it twice, gp controller makes that familiar clicking noise, then it starts, runs for about 2-3 seconds then shuts right off. I once again cycle the gp's twice then it cranks and finally starts. After starting it runs fine.
On Monday, get in the van to go to work and it just would not start, turns over, but wont start, and I'm now smelling diesel fuel. Remove the dog house - see that I have fuel dripping from what I thought was the fuel line (supply) but later on from investigating and reading the ford manual it appears the line that is leaking is the return fuel line.
The line that is leaking has an outside cover of braided like cloth (like a fire hose), when I turn the key to the WTS position this line (in 2 places) over the engine has fuel weeping from the fuel line. What I thought was a GP change out is now something totally different. I've had the diesel for a few years now and I know a little about it, but not a mechanic by any means. Any thoughts or information on what to do next would be VERY APPRECIATED! Thanks, Vince.