My '88 325i refuses to start. Battery is good, it cranks but it just
does not want to start. I have investigated the following:

FUEL System:
1. Using 2 wires I connected the fuel pump directly to the battery -
the pump ran and delivered fuel (I had a hose with one end connected
to the fuel pressure regulator in the engine compartment and the other
end in a container to receive the fuel). So the fuel pump is good.

2. I removed the fuel pump relay and using a jumper wire I've
connected sockets 30 and 87 then I measured the voltage between the
terminals in the fuel pump connector - it was battery voltage - good.

3. I cranked the engine while watching the hose I had connected to the
fuel pressure regulator to see if fuel was delivered. There was plenty
of fuel - good.

IGNITION System:
4. I tested for spark using a grounded spark plug connected to one of
the wires that I had disconnected from one of the spark plugs. There
were blue sparks while cranking the engine.

So I have spark and fuel delivered to the cylinders but the car would
not start at all... Could anyone please help with a suggestion/idea of
what could be wrong? What should I check next?
Thanks a lot,
Dan