A couple of things to check...
The fuel system on the 1290's were sometimes difficult to bleed.
Are you getting fuel to the injectors?
I've always found that a diesel engine that won't start on ether usually isn't getting ANY fuel at all, providing timing and the rest of the mechanicals are correct.
Remove the injector lines from the injectors and spin the engine over until you see fuel coming from all 4 lines. Reinstall the lines, but leave the nuts loose and spin the engine again until there are no air bubbles coming from around the nut, then tighten the nuts.
Also make certain that the fuel supply pump on the side of the block is pumping fuel to the injection pump.
Hope this helps,
Mark