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I'm no expert on M10 engines but I've never seen this part on an E21. It's not a WUR, it's not a cold start valve and I believe a pressure regulator (FPR) is built into the fuel distributor, that is why the main fuel supply and return lines hook right up to the fuel distributor, or at least that is the case with the 6 cylinder models. And I can't think of anything else that should hook onto the fuel system there either. As puzzled as you are!

So I went back to the junkyard and grabbed the fuel distributor off the junk car. And as the picture shows, the two are different. There is a port for the frequency valve on the right, but not the left. So I swapped the two hoping that it would solve the issue of running rich. But now it won't start at all. Its not getting fuel. So I guess my question is, would I have to swap out everything related to the fuel distributor to get this to run? I've never had to actually work on one of these before, my previous e21's were just fine. Or does anyone have any suggestions in general?

Another quick update, I shot some starting fluid in and it fired up. And it runs, but only at 4000rpm or higher. If you let off the gas at all it falls on it face and dies. I think its time to check the fuel pressure, but I think that it is fine with a new fuel pump. On the plus side, its not smokey anymore.

Hmmmm clearly other stuff than what I'm used to. What I do know is that you need a real firm fuel pressure for any CIS fuel injection system before it gets the distributor and injectors going. So then perhaps fuel pressure or a seized piston inside the distributor?