Fuel Pressure Question

I am currently experiencing issues with my 1988. When I start the engine, it runs/idles/revs in neutral great. As soon as I put a load on the engine it starts to run really lean and dies, it wont even idle after being in a load condition. A friend of mine claims that a the regulator is not allowing enough fuel to the 42lb injectors that are powering the 408w and running it lean. Thoughts?
 
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Was the engine running good previously then developed a problem on its own, or did it develop a problem after changes were made or work done on it?