Nope, spring is still in the first regulator and the adjuster screw was removed. By doing this the fuel pressure is set to the minimum (40 psi) and the second regulator was used to add the additional 20psi.
My thinking was that if the big regulator poppet was so large that when it lifted it would rapidly drop the pressure, then slam shut and repeat. If so, why would it not do the same with the second regulator in line? The second regulator would smooth things out if this was the case, but that big one should still be chattering away.
Also, if flow was the issue (not enough), why is it that when the pump is set to full speed the fluctuations get worse?
I dunno, I am gonna get some clear hose and make sure air (cavitation) is not my problem before moving further.