Did you try to reduce pressure with the pressure adjustment screw? The pressure regulator will allow fuel to flow through because it will maintian prositive pressure and since there is no positive pressure at rest the valve will be open. The cline regulator is called a demand regulator, that is it regulate's pressure at or very near atmospheric. Sometimes a demand regulator will allow a very small amount of fluid at atmospheric pressure, especially if the barometer is low but generally they are closed at rest.