As another update... found a couple REALLY interesting things:
First, I got it hooked up and running last weekend (but not yet hooked to the OE tank). I had it plumbed in a loop/circuit so that it pumped from the cell, through the pump, to the separator, to the filter, and finally back to the cell. So I decided to test the water separator/WIF light... dumped about a quart of water into the cell (containing around 5 gallons of fuel) and proceded to "catch" it, or so I thought.
Turns out having the pump between the cell and the separator causes the water and fuel to be emulsified as it passes, and therefore the water would not separate from the fuel... I ended up with a big foamy mess being return right back to the cell (past two water separators mind you!!!).
What I found interesting about this is the fact this pump is very similar to that of a 2nd gen carter by design. In less thatn 50k with my FASS, I have drained more water out of the separator than either my dad or myself have drained out of our 99s' OE fuel system in over 450k worth of miles, combined. This leads me to believe that the fuel/water is passing through the OE pump, getting emulsified, passing through the OE filter, and getting run right through the engine... my little mistake makes me pretty confident about that statement.
So, part of last weekend's job was replumbing the system (yet again) so that it now runs: cell, separator, pump, filter, cell (or later, main tank)... sorta the same flow circuit as a FASS or Airdog.
Forward to last night. Decided to drain the mess out of the cell and clean it... I proceded to pump it into a 5 gallon can and the WIF light popped on!!! Turns out the emulsified fuel partially separated from the water and I was catching water with the replumbed setup. And the WIF light (and my homemade sensor) works!!! So after I drained everything, I wiped the inside of the tank out (lucky for big openings in the fuel cell) and cleaned everything up one last time. I ended up catching at least 90% of the water I had initially placed into the tank!!! So my separator works!!
Hopefully this weekend I can get it finally plumbed into the truck's tank so I can end this project!!
Oh, and my checkvalve works just like I thought it might... the cracking pressure prevents any siphoning, yet still allows a pretty good volume of fuel through!
steved