I am surprised you have not burned your truck to the ground! The wires are total garbage. I am not saying this to degrade you. I am stating facts. You need to do something drastic like take it to a GOOD shop and spend some money. You don't have a clue and you will end up making a pile of...
The guys on the list, above, are members here. We know them very well and trust them. I was at Classic Diesel's shop about two years back. I missed Wes so I did not get to see his shop or talk to him. :( My fault.
My first truck was a 1972 4X4 with manual everything for $4040.00 out the door. A friend just bought a F-150 4X4 with all of the toys for $70,000.00! I bought my first house in the SF Bay Area for a bit more.
YES put the transfer case in neutral. I have towed Jeeps all over the Western States with it in neutral and it works great! That is way they have added the neutral to the transfer case.
I have removed the ball joint by hitting the part where the u-joint goes through the axle. This is 90 degrees from the centerline of the joint finger. It works.
I had my last Detroit Diesel back in 1985. It was a 2 cycle 8V92TA rated at 425 hp and it was really a screaming Jimmy!!! I don't miss it much. I like the lower rpms in today's diesel engines. Dump the clutch and you are in the power curve.
Have you tested the glow plugs? Take a test light and attach the ground to the positive post of the battery and then place the test tip on each glow plug. If it lights up they are good. No light, no joy. If you replace the glow plug(s) use Motorcraft ZD-9 of Beru glow plugs only! The others...
The lower the compression psi, the more likely you will start to have starting problems. I have not been able to get a number for you. Google is your friend.
https://www.quora.com/What-is-the-compression-pressure-in-diesel-engine?share=1
After doing some checking it looks like 400 psi is pretty good for a 7.3.
Post the numbers you get. Asking us to give you the values on an unknown engine is impossible. Your compression numbers should be within 15% of each other for a good engine.
I am going to disagree with The Gill Fish on glow plugs. USE ONLY Motorcraft or Beru glow plugs. All the others can swell as time goes by and are almost impossible to remove without removing the head(s). But it is YOUR truck, so use what ever you want.
The timing marks are on the mounting surface (timing chain cover) where the two meet. You should see a mark on the pump and marks on the cover. I don't currently own a 7.3 truck so I can't show you.
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