Interesting. I also have a 1968 200D fintail and it smokes lots of white smoke when starting and until it warms up. I've adjusted the valves and sent the injection pump in to be serviced and the diaphragm replaced, had the injectors rebuilt, and I still have this problem. The engine has massive oil leaks, one of them being from the head. It's a shame, too, because this engine is supposed to only have a few thousand miles on a rebuild. Actually, almost every good thing the seller advertised about the car was a lie.

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1967 W110 Universal Wagon, Euro, Turbo Diesel, Tail Fins, 4 Speed Manual Column Shift, A/C
1980 W116 300SD Turbo Diesel, DB479 Walnut Brown, Sunroof, Highly Optioned, 350,000+ Miles