Water Seperator question

[ASV603]

I am trying to chase down a stalling problem and discovered my water separator was full of red fluid (No. 2 heating oil). I have run several tanks of diesel through the machine since I have owned it (about a year). Now I understand that No. 2 should not be the issue, however the shop manual states that the separator bulb should be empty. So am I understanding correctly that fuel should not be making its way into the separator? It also says that a full separator bulb can damage the enigine, so I am concerned with the presence of fuel in the separator. Fortunately, (or perhaps unfortunately) there is no obvious presence of water. Any thoughts on this?

 

[ASV603]

Additionally, could the full separator bulb, allow water to bypass the system causing my stalling problem?

 

[Tazza]

Additionally, could the full separator bulb, allow water to bypass the system causing my stalling problem?

Not sure i have seen a setup like this, the water seperator is generally a glass bowl with a filter element above it, the water stays at the bottom and can be drained off. Or you can get a filter with an fitting at the bottom that you open to drain any water out. Never a seperate canister to hold the water.
I guess if it was over filled with water, it could let it out into the system, but i'd like to think there would still be fuel going through and it would be burnt up. The issue could be corrosion caused if water hit the injector pump.