If the pressure regulator is bad, I believe the fuel will leak out of the regulator. Now if I run the engine and shut it down, the fuel system is pressurized, won't the fuel that is left in the regulator leak out until gone out of regulator or should it not leak at all. I noticed that when the sytem is pressurized it leaks out a bit, but after sitting for a couple hours, I dont get any leaks. Can someone clear this up for me. Thanks

Im guessing simply put, there should be no fuel running through the FPR, so any fuel coming out either way is a no no?

Leaking out _where_? If you mean that it leaks out through the vacuum-line port, so it goes all over the place if you pull the vacuum line off, then the regulator is history; replace it. That leaking gas is getting snorked up into the engine'* vacuum lines, and although I _think_ it'll eventually make its way back to the intake and get burned up, it'* not doing anything any good along the way.

After letting the car run a few miles, I shut off the engine and then pull the air line off the FPR. After about 30 seconds or so fuel will leak out of the FPR itself. I have tried with the engine running (taking the air line off the FPR) and reving up the engine and no fuel came out of the FPR. So what I'm trying to find out is if any fuel and I mean any, is the FPR toast (no matter how much fuel comes out).

Correct. It'* supposed to be a sealed diaphragm, with fuel on one side and vacuum on the other. If the fuel is getting through the diaphragm to the vacuum side, then the regulator is shot.