P263E Ford M350 shows up when there's an electrical problem that causes the fuel volume regulator to malfunction and open. It's quite an unusual problem and likely intermittent. Other serious codes may cause this code to pop up, and they may come with dangerous drivability issues that may expose you to safety risks and cause damage to the engine in the long run.
Possible Causes :
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Look for rubbing, scraping, bare wires, worn spots or melted plastic connectors. Pull the connectors apart and carefully look at the terminals (the metal parts) inside the connectors. With the valve disconnected, the red voltmeter lead should be attached to the IMRC valve power wire and the black voltmeter lead connected to ground. Replace the oxygen sensor that is downstream from the catalytic converter on the side of the engine that does not contain cylinder #1. Also, if a oxygen sensor code stating "heater circuit malfunction" the sensor has most probably failed.
Diagnostic trouble code P263E Ford M350 is not difficult to diagnose and repair. Thus, it always pays to have a qualified technician to look after your vehicle should this error code arise.
Diagnosing this code requires the engine to be in good running shape, without unmetered air entering the engine. If other codes that relates to misfiring condition, lean running or air entering the engine is present, then you must first fix those error codes before P263E Ford M350.
Fortunately, P263E Ford M350 is a fairly common OBD code, meaning that it applies to all makes and models of vehicles made after 1996.