1. Procedure 3. Diag. Mode 2 sensor test, the 6th step:
"Crank the starter motor" - I take this to mean start the engine
(so this and other steps below are KOER.)

Question:
Is this correct - run test with engine running? Yes/No?

No - That's a test of the RPM sensor — presumably we'd be trying to diagnose a no-start condition. (If the engine runs, it's safe to assume the RPM sensor is OK, so the test would be pointless.)
The starter is engaged to see if RPM sender pulses are present or not.

In my opinion, the FAQ OBD description is not well organized or presented, especially the Mode 2 procedures (same for Bentley). As an overview, Mode 2 allows the following tests:

A - Fuel Related (socket 2)
1• TPS Idle contact signal OK = 3-3-2 (Manual throttle spool activation)
2• TPS WOT signal OK = 3-3-3 (Assistant operates Accellerator full pedal)
3• Speed signal from Ignition CU OK = 3-3-1 (Crank engine with starter)**
4• AC Control OK = 1-1-4 (Engine off or on???, turn AC control on)<=====???
5• AC Compressor engagement OK = 1-3-4 (Engine running, turn AC on)
6• RPM compensation, Auto Tran OK = 1-2-4 (Engine running, engage AT)

B - Ignition Related (socket 6)
1• TPS Idle contact signal OK = 3-3-4 (Manual throttle spool activation)
2• RPM Sensor signal OK = 1-4-1 (Crank engine with starter)**

** Diagnosing a no-start

The above is based on the '93 940 Regina/Rex Fuel and Ignition green book, which offers ZERO information on invoking these tests, the (parenthetic comments) above are my best guesses — with admitted confusion about Fuel test #4.


--
Bruce Young
'93 940-NA (current), 240s (one V8), 140s, 122s, since '63.