Hi tom
I as well had starting issues on my boat. same engine 89 cat 36. You can only bleed the injectors when the engine is cranking. you need to loosen the line at the injector until solid fuel comes out.
Next when its cranking spray WD-40 down the intake manifold. I learned this from another mechanic. WD_40 is diesel engine starting fluid. After a good heat to the glow plugs I cranked the engine over spraying WD down and she fired right off. This may be all you need for the air to work its way out. please also note that if you think you have a bad injector or something like that the engine will extremely rough along with hard start.
diesels are simple air and fuel is all they need
hope this helps
Capt Bill
#1015 std rig fin keel

[quote=TomB] I have tried to start the engine for 10-15 seconds at a time and am hoping that cooling water does not back up into the engine exhaust.  (I suppose it drains out of the muffler if you let it sit after trying to start it.) 
 [/quote]
Tom -
You are supposing very WRONG that the water "drains out of the muffler if you let it sit...."  Unless you have a very large leak in your muffler, where would it possibly drain out to (except -- gulp -- the cylinders, and thence past the rings into the crankcase)?  Only a combusting engine can develop the gas pressure to push the water out of the muffler.
If your engine doesn't start after prolonged cranking (no more than 20-30 seconds), you must, MUST manually drain out the water lift muffler before you try cranking it again.  You run the risk of causing serious damage to the engine otherwise.   There is a small petcock on the base of the water lift muffler to drain it.

Yup.  Drain the muffler of any water.  Does you engine have a fuel bleed screw?  Something other than the air vent on the filter.  Might be on the injector pump or at the manifold where all all of the injector lines come together.  If so, this is the proper place to bleed the engine.  Usually just involves running the lift pump while opening and then slowly closing the valve.  Searching this forum should yield a procedure.

[quote=TomB]>>>>>>>>>>>>>>>>>>>With my fuel pump going, I have fuel coming out of the air bleed on top of the engine filter.  I don't know how to tell if the injector pump bleed worked and I'm afraid to dissemble the injector lines on the engine. 

I have tried to start the engine for 10-15 seconds at a time and am hoping that cooling water does not back up into the engine exhaust.  (I suppose it drains out of the muffler if you let it sit after trying to start it.)  There were signs of life when I first tried to start it.  Now, there is no sputtering.  I still think it's fuel related and not glow plug.  
Does anyone have ideas or maybe a logical step by step approach that I can try before I call in the high priced mechanics??
 [/quote]

Tom,

You shouldn't have any fuel coming out of the knurled knob.

Here's a how to link:

Bleeding 101    http://c34.org/bbs/index.php/topic,6377.0.html